Political risk to weigh on Turkey rating after election - Fitch

ISTANBUL (Reuters) - Political risk will weigh on Turkey's credit ratings through its potential effects to discourage capital inflows and reduce policy predictability, ratings agency Fitch said on Monday after Prime Minister Tayyip Erdogan won the presidential election.

Political tension was likely to remain high as Erdogan seeks to extend the powers of the presidency and his pressure on the central bank to cut interest rates could undermine the central bank's "tenuous credibility", Fitch said in a statement.