Standard & Poor’s (S&P) Updates Turkey’s Credit Rating

Credit rating agency Standard & Poors (S&P) confirmed Turkey’s credit rating as “B” and raised its credit rating outlook from negative to stable.

According to the published text, this decision was taken with the expectation that the outlook could be turned positive if the net foreign exchange reserves of the Central Bank of Turkey (CBRT) strengthen and the effectiveness of monetary policies increases.

In S&P’s statement, it was envisaged that by 2026, as renewed political uncertainty subsides, the new team will rebalance the Turkish economy away from external debt-financed consumption towards more balanced external and fiscal accounts and more acceptable inflation levels.

On the other hand, S&P last determined Turkey’s credit rating as ‘B’ in March and reduced its credit rating outlook from “stable” to “negative”. Fitch, another credit rating agency, stated on September 8 that the revision of Turkey’s credit rating outlook reflected a ‘return to a more traditional policy mix’.

*This is not investment advice.