Standard & Poor's announces Turkey's credit rating
Standard & Poor's (S&P) has affirmed Turkey's credit rating at "B" while upgrading its credit rating outlook from "negative" to "stable."
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International credit rating agency Standard & Poor’s (S&P) has affirmed Turkey's credit rating at “B”.
Revising the credit outlook from “negative” to “stable,” S&P made the following assessments:
“With the removal of renewed political uncertainty, we believe that by 2026, the new team can steer the Turkish economy away from consumption financed by external debt toward more balanced external and fiscal accounts, and more acceptable inflation levels.
“WE COULD TURN THE OUTLOOK TO POSITIVE…”
As the effectiveness and independence of monetary and financial sector policies increase, we could turn the outlook to positive if Turkey’s balance of payments position, particularly the Central Bank of the Republic of Turkey's (CBRT) net foreign exchange reserves, strengthens.
“WE EXPECT CONTINUED INTEREST RATE HIKES”
We expect interest rate hikes to continue in 2023, albeit more cautiously.
GROWTH FORECAST
We estimate that GDP growth will slow to 3.5 percent for 2023, and then fall to 2.3 percent in 2024.”