Standard & Poor’s (S&P) confirmed Turkiye’s credit rating as “B” and increased its credit rating outlook from “negative” to “stable”
International credit rating agency Standard & Poor’s (S&P) confirmed Turkiye’s credit rating as “B” and increased its credit rating outlook from “negative” to “stable”.
S&P revised Turkiye’s credit rating outlook.
In the statement made by the organization, it was stated that Turkiye’s credit rating was confirmed as “B” and the credit rating outlook was changed from “negative” to “stable” due to “policy change”.
In the statement, it was reminded that the new economic management has increased the policy interest rate by 21.5 points to 30% since June in order to fight inflation and reduce the dollar, and has introduced some indirect taxes to balance the financial deterioration.
“The outlook can be turned positive if the CBRT’s net foreign exchange reserves strengthen.”
In the statement, it was stated that it is believed that by 2026, once the renewed political uncertainties disappear, the new team will be able to rebalance the Turkish economy away from foreign debt-financed consumption and towards more balanced external and fiscal accounts and more acceptable inflation levels. It was noted that the “stable” credit rating outlook reflects balanced risks to Turkiye’s creditworthiness due to the re-implementation of orthodox monetary policies.
In the statement, it was stated that the outlook could be turned positive if Turkiye’s balance of payments position, especially the CBRT’s net foreign exchange reserves, strengthened while the effectiveness and independence of monetary and fiscal policies increased.
In the statement, which also included growth forecasts for the Turkish economy, it was noted that the country’s economy is expected to grow 3.5% this year and 2.3% next year.
Source: Trthaber / Prepared by Irem Yildiz