Türkiye awaits strong credit rating upgrade from Moody’s
Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, U.S., November 12, 2021 (Reuters)
While focusing on international credit rating agency Moody’s upcoming credit rating decision expected this Friday, the markets are paying close attention, with significant business figures anticipating a strong rating upgrade from the institution.
Moody’s, which revised Türkiye’s outlook upward in January, is set to announce its assessment on the night of July 19. The credit rating decision is crucial amid heightened foreign interest. Dr. Erkan Kork, chairman of BankPozitif Credit and Development Bank, commented on the matter, stating that the implemented economic program has gained acceptance among foreign financial circles.
“Our country holds a strong reputation in international markets. I believe our rating will be upgraded by two notches. Even if it’s a single-notch increase, I anticipate Moody’s might make an off-cycle evaluation towards the end of the year, potentially further improving our country’s rating. Türkiye’s strong improvements in CDS and other risk indicators, exit from the grey list, and good budget performance have contributed to a more predictable policy framework. Credit rating agencies cannot ignore this situation.”
‘Türkiye is a country that needs to be considered for investment opportunities’
Highlighting that the positive economic atmosphere has strengthened with the beginning of the disinflation process, Dr. Erkan Kork said, “With our country’s economy, political stability, and favorable investment environment, Türkiye is not a country to be feared but one that needs to be considered for investment opportunities.
International direct investments have started to flow into our country. Under the leadership of our President Recep Tayyip Erdogan, with the determined steps of our Minister of Treasury and Finance Mehmet Simsek and the economic management, I believe positive signals from foreigners will increase. An upgrade in our rating will further accelerate long-term investment inflows into Türkiye.”
Fitch Ratings and S&P have raised Türkiye’s rating this year in their reports, while Moody’s upgraded Türkiye’s credit rating outlook from “stable” to ” positive ” in January.
