Moody’s makes historic upgrade: Türkiye’s credit rating soars from ‘B3’ to ‘B1’

Moody’s upgraded Türkiye’s credit rating from “B3” to “B1,” while maintaining a “positive” credit rating outlook. With this development, Türkiye’s credit rating has been upgraded by 2 notches for the first time in its history.

In a recent statement, the credit rating agency announced that Türkiye’s credit rating has been upgraded from “B3” to “B1,” while the outlook remains “positive.”

Improvements in governance

The statement noted that the primary driver behind the upgrade to B1 is the improvements in governance, particularly the increasingly well-established and committed return to orthodox monetary policy.

‘It provides confidence’

It was highlighted that this has started to show tangible results in reducing Türkiye’s major macroeconomic imbalances. “The start of moderating inflation and domestic demand gives us more confidence that inflationary pressures will ease significantly in the coming months and towards 2025,” the statement added.

The statement also mentioned that the Turkish central bank has rapidly enhanced the credibility of its monetary policy, which has contributed to the restoration of confidence in the Turkish lira.

Additionally, it was noted that the tight policy stance has significantly reduced Türkiye’s high external vulnerabilities. The positive outlook reflects an upward risk balance.

Result of our program: Finance Minister

Finance Minister Mehmet Şimşek commented on Moody’s decision, stating:

“Moody’s has upgraded our credit rating by two notches for the first time! This increase, following an 11-year hiatus, is a result of the program we have implemented. The improved rating and positive outlook reflect our successful efforts in economic rebalancing, decreasing external financing needs, increasing international reserves, and managing disinflation. The positive outlook signifies confidence in our program and suggests potential for future upgrades. We will continue to implement our rule-based and predictable policies to enhance the resilience of our economy.”