26.07.2025 02:02
The international credit rating agency Moody's has upgraded Turkey's credit rating from 'B1' to 'Ba3'. The agency has also changed the outlook for the credit rating to 'stable'. On the other hand, another international credit rating agency, Fitch Ratings, did not make any changes in its assessment of the Turkish economy.
The international credit rating agency Moody's has announced its assessment of the Turkish economy.
MOODY'S RAISED TURKEY'S CREDIT RATING
In a statement from the agency, it was reported that Turkey's credit rating has been upgraded from 'B1' to 'Ba3'. The statement indicated that the increase in the rating reflects the strengthened performance of effective policymaking, specifically showing the Central Bank of the Republic of Turkey's (CBRT) commitment to a monetary policy that has permanently alleviated inflationary pressures, reduced economic imbalances, and gradually restored the confidence of domestic depositors and foreign investors in the Turkish lira. The statement also reflected the view that the rating increase indicates a reduced risk of policy change, although this risk is expected to continue in the coming years.
CREDIT RATING OUTLOOK CHANGED TO 'STABLE'
In the statement, it was reported that the credit rating outlook has been changed from 'positive' to 'stable', indicating that this balances the upward and downward risks to Turkey's credit profile. The statement noted that maintaining the tradition of effective policymaking could support the improvement in Turkey's external position more than anticipated. It was emphasized that ongoing and planned structural reforms could further reduce dependence on energy imports and enhance the competitiveness of exports, which could increase the country's resilience to external shocks.
MOODY'S HAD ALSO RAISED THE CREDIT RATING BY TWO NOTCHES LAST YEAR
Moody's had raised Turkey's credit rating by two notches from 'B3' to 'B1' in July 2024, while maintaining the credit rating outlook as 'positive'. The credit rating agency's schedule for this year set the first credit rating assessment date for Turkey as January 24, but Moody's did not make a decision regarding Turkey's credit rating on that date.
FITCH DID NOT MAKE ANY CHANGES, CONFIRMED TURKEY'S CREDIT RATING
On the other hand, another international credit rating agency, Fitch Ratings, did not make any changes in its assessment of Turkey. The agency confirmed Turkey's 'Long-Term Foreign Currency Issuer Default Rating' (IDR) at 'BB-' level while maintaining the credit rating outlook as 'stable'.