Türkiye’s Rating Upgrade Receives Positive Feedback from Analysts
Moody’s recent decision to upgrade Turkey’s credit rating by two notches has been received positively by experts and analysts. This upgrade comes after improvements in governance, monetary policy, and progress on inflation. It marks Moody’s first upgrade for Turkey in over a decade.
The upgrade has been attributed to the efforts of Treasury and Finance Minister Mehmet Şimşek and President Recep Tayyip Erdoğan in implementing a tight monetary and fiscal policy to address inflation. The decision reflects positive expectations for Turkey’s future and is seen as a step towards reaching the investment-grade category.
The agency has also noted that inflationary pressures are expected to ease in the coming months, with the country’s annual inflation rate already showing signs of decline. The Central Bank of the Republic of Turkey has played a key role in enhancing the credibility of monetary policy and restoring confidence in the Turkish lira.
The upgrade is expected to improve foreign capital flows into Turkey and make direct foreign investments more sustainable. It is anticipated that other credit rating agencies like S&P and Fitch Ratings will also follow suit with similar upgrades.
Overall, the upgrade is seen as a positive development that will facilitate access to more qualified financing for investment, employment, production, and exports in Turkey. It underscores the country’s progress in economic balancing, reducing external financing needs, increasing international reserves, and the disinflation process.
Source
Sofia Martins graduated from the Technical University of Madrid with a degree in Agronomy, focusing on plant nutrition and soil science. She has a deep interest in sustainable fertilizer management and works to develop eco-friendly solutions that optimize plant growth while minimizing nutrient runoff. Sofia is a dedicated researcher and has published several articles on sustainable plant nutrition practices.