Moody's upgrades Türkiye's ratings to B1 from B3, maintains positive outlook

By Ovunc Kutlu

ISTANBUL (AA) - Moody's announced Friday it upgraded Türkiye's long-term foreign- and domestic-currency issuer and foreign-currency senior unsecured ratings to B1 from B3.

The global rating agency said the outlook remains positive.

"Concurrently, the foreign-currency backed senior unsecured rating of Hazine Mustesarligi Varlik Kiralama A.S. has also been upgraded to B1 from B3," with a stable outlook, it said in a statement.

The reasons for the upgrade were listed as improvements in governance, more specifically the decisive and increasingly well-established return to orthodox monetary policies, which are yielding the first visible results in terms of reducing the country's major macroeconomic imbalances, it said.

While inflation and domestic demand have started to moderate, inflationary pressures are expected to ease significantly in the coming months and into 2025, it added.

The Central Bank of Türkiye is rapidly enhancing the credibility of monetary policy, which in turn is helping to restore confidence in the Turkish lira, said the agency.

"Moreover, the tight policy stance is already materially reducing Turkiye's elevated external vulnerability," said the statement.