The Turkish lira has fallen by as much as 1% this morning and stocks have slid by nearly 4% after Moody’s downgraded the country’s debt to junk, following a similar downgrade from S&P Global Ratings.

    The agency cited the economy’s exposure to foreign outflows, dwindling foreign exchange reserves and muted growth prospects in junking its debt.

    The lira has slumped to its lowest level against the dollar since early August, weakening to TR2.99 at publication time – dropping 2% since Friday. Istanbul’s main bourse fell 3.8% at the opening bell. The country’s 10-year bond yields on local currency debt jumped by some 0.43 percentage points to 9.71%.