"As the risks to Turkey's credit profile increase, the country's institutions appear to be unwilling or unable to effectively address these challenges."
The rating agency says Guitar Center bondholders could receive less than par in a restructuring, which would amount to a "selective default."
The credit rating agency warns of "a growing likelihood that Toshiba will become unable to fulfill its financial obligations in a timely manner."
Fitch Ratings expresses doubts about Gap's cost-cutting strategy, saying earnings will fall this year even with $100 million in expense reduction.
As a standalone company, Staples has "limited ability to reverse declines in sales and EBITDA over the forecast horizon," Fitch warns.
The downgrade brings Moody's in line with other rating agencies concerned about Brazil's creditworthiness amid its worst recession in decades.
Should the economy come under stress, a large number of leveraged loans could default and cause record losses, according to one banking regulator.
Loan issuers with risky or large deals are having to bump up spreads and increase discounts to clear the market.
