Standard & Poor's raises Türkiye's rating to BB- from B+ with stable outlook

Central bank's tight monetary stance helped stabilize Turkish lira, bring down inflation, rebuild reserves, de-dollarize financial system, says agency

By Ovunc Kutlu

ISTANBUL (AA) - Standard & Poor's (S&P) announced Friday that it raised Türkiye's long-term sovereign credit rating to BB- from B+ with a stable outlook.

"The Central Bank of the Republic of Turkiye's (CBRT's) tight monetary stance has enabled Turkish authorities to stabilize the lira, bring down inflation, rebuild reserves, and de-dollarize the financial system," it said in a statement.

"Turkiye's savings gap with the rest of the world has narrowed, which is visible in the approximately 4 percentage points of GDP decline in the current account deficit since 2022," it added.

The rating agency said the stable outlook reflects Türkiye's balanced risks over the next 12 months to authorities' plans to bring down still elevated inflation, manage workers' wage expectations and rebalance the Turkish economy.

The stable outlook also reflects the rating agency's expectation that the current economic team will persevere with tight monetary policy against the implementation risks associated with the government's medium-term program.

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