Moody's announces Turkey's credit rating

Moody's has upgraded Turkey's credit rating from "B3" to "B1" while maintaining the credit rating outlook as "positive."

The primary reasons cited for the upgrade were improvements in governance and, in particular, a determined and 'increasingly well-entrenched return' to orthodox monetary policy.

The report stated, "Our confidence is growing that inflationary pressures will ease in the coming months and in 2025 as moderation in inflation and domestic demand begins." While inflation is projected to fall below 45 percent by December, the year-end inflation expectation for 2025 was also lowered from 38 percent to 30 percent.

It was emphasized that the Central Bank of the Republic of Turkey is rapidly increasing the credibility of its monetary policy, which is helping to restore confidence in the Turkish lira.

Furthermore, the statement pointed out that the tight policy stance has significantly reduced Turkey's high external vulnerability, noting that the positive outlook reflects a balanced risk profile tilted to the upside.

In January, Moody's had kept Turkey's credit rating at B3 but raised its outlook from stable to positive.

COMMENTARY FROM MINISTER ŞİMŞEK ON MOODY'S

Minister of Treasury and Finance Şimşek evaluated Moody's rating on his social media account and made the following statement:

''Moody's has upgraded our credit rating by two notches for the first time! Thanks to the program we are implementing, Moody's, which has raised our country's credit rating after 11 years, has maintained the outlook as positive.

The rebalancing in the economy, the decreasing need for external financing, increasing international reserves, and the disinflation process were effective in the rating upgrade.

While maintaining the positive outlook reflects the confidence in our program, it also points to potential further rating upgrades. We will continue to implement our rule-based and predictable policies that increase the resilience of our economy with determination.'' he stated.