US-based international credit rating agency S&P Global Ratings has upgraded Turkey’s credit rating to BB- from B+ and has kept its outlook stable.
“The Central Bank of the Republic of Turkey’s tight monetary stance has enabled the Turkish authorities to stabilize the lira, bring down inflation, rebuild reserves, and de-dollarize the financial system,” said in the statement. The stable outlook reflects balanced risks over the next 12 months to the authorities’ ambitious plans to bring down still elevated inflation, manage workers’ wage expectations, and rebalance the Turkish economy.
S&P noted that it could lower the ratings if pressures on Turkey’s financial stability were to intensify, potentially in connection with unabated currency depreciation alongside a reversal of anti-inflationary policies, while it could raise the ratings should there be further progress on bringing inflation down closer to single-digit levels.
