Moody's upgrades Turkey's credit rating

International credit rating agency Moody's has upgraded Turkey's credit rating from "B1" to "Ba3" and revised its outlook from "positive" to "stable." This decision is considered a result of the Central Bank's decisive steps to alleviate inflationary pressures and its efforts to reduce economic imbalances.

Moody's last upgraded Turkey's credit rating by two notches from "B3" to "B1" on July 19, 2024, and maintained its "positive" outlook. At that time, it was stated that improvements in governance and the return to orthodox monetary policy were influential.

In the latest report, it was stated that the moderation in inflation and domestic demand has increased confidence that inflationary pressures will decrease in the coming months and throughout 2025. These developments support efforts to restore the confidence of local depositors and foreign investors in the Turkish Lira.

News Source: 12punto