In the wake of an abortive coup in July, ratings agencies have not been kind to Turkey's sovereign credit. Nevertheless, some global investors still see opportunity in the middle of a country riven by political unrest.
After the failed overthrow of Turkish President Recep Tayyip Erdogan and his government, the actions against the sovereign credit came swiftly, as Moody's Investor's Service sliced the country's rating to "junk" status in September and warned of a risk of "sudden" capital outflows. Standard & Poor's also reduced the country's rating, putting it deeper into speculative territory and gave it a negative outlook.
With reserves falling, the lira — Turkey's currency — is also battling for survival, hitting recent lows this month.
"The Turkish lira is a sinking currency, one that could quickly become a plunging currency," Steve Hanke, Johns Hopkins University professor of applied economics and director of the Troubled Currencies Project at the Cato Institute, recently told CNBC.
Yet other observers note that Turkey's economy has remained afloat despite challenges from a domestic Kurdish insurgency and threats from global terrorism. Last month, data showed the economy expanded by 3.1 percent in the second quarter, defying mounting political turmoil in the country that preceded the violent putsch.
Writing in the Harvard Business Review this summer, H. Akin Unver, an assistant professor of international relations at Turkey's Kadir Has University in Istanbul, said the economy has been "surprisingly resilient." He noted key fundamental factors were providing a significant boost.
"At this time, the resilience of the Turkish economy stems in large part from the domestic price stability that comes with low oil prices," he said. "If they rise, a more problematic picture will emerge. Turkey can't rely on the current price stability forever, but it is helping now."
Meanwhile, Unver added that "the main driver of the Turkish economy is the extent of private household consumption, which covers roughly 70 percent of Turkey's GDP."