Global credit rating agency Moody’s has downgraded Turkey’s sovereign credit rating by one notch to “junk” status.

“Moody’s Investors Service has today downgraded the Government of Turkey’s long-term issuer and senior unsecured bond ratings to Ba1 from Baa3 and assigned a stable outlook,” a written statement from the company said on Friday.

The agency based its decision on two factors: the increase in the risks related to the country’s sizeable external funding requirements, and the weakening in previously supportive credit fundamentals, particularly growth and institutional strength.

“Moody’s notes that Turkey continues to operate in a fragile financial and geopolitical environment and that its external vulnerability has risen, both over the past two years and more recently as a result of unpredictable political developments and volatile investor perception,” the statement further said.

Moody’s has joined to S&P to put Turkey’s credit rating in junk territory, while Fitch has the country’s grade rating on review for downgrade.