S-400 sanctions not likely to affect Turkey's credit rating - S&P

Turkey’s credit ratings will most likely not change should the U.S. apply sanctions against the country over its procurement of the Russian S-400 missile system, international credit rating agency Standard & Poor's said on Monday.

Turkey’s rating was only likely to be affected by the sanctions if they specifically targeted Turkish banks, S&P’s main Turkey sovereign analyst, Maxim Rybnikov, told Reuters news agency.

Turkey took its first shipment of the S-400 on Friday, ignoring repeated warnings from Washington. U.S officials have warned Ankara that it faces the risk of sanctions that can be imposed under the Countering America's Adversaries Through Sanctions Act (CAATSA) and expulsion from the U.S.’ F-35 fighter jet programme if it installs the Russian system.

Sanctions could send Turkey’s economy, which is yet to recover from a currency crisis last year, into a tailspin. It was the limited sanctions levelled on two Turkish ministers in August 2018 that triggered a rapid lira slide, and the currency lost nearly 30 percent of its value against the dollar by the year’s end.

However, Rybnikov’s statement indicates that Turkey is likely to retain its B+ rating with S&P despite the prospect of sanctions.