Moody’s raises Turkey’s credit rating
International ratings agency Moody's raised its credit rating outlook on
Turkey from stable to positive on the back of both a strengthening economy and positive developments in the country's EU process. Furthermore, credit ratings in terms of the New Turkish Lira were increased to B1 from B2.
With this move, Moody's paved the way for a possible rate hike to 'Ba3', which is three notches away from investment grade. Moody's ’Ba3' is equivalent to the S&P rating BB-.
Moody's indicated that internal debts and the current account deficit still constitute a risk for the Turkish economy however.