Newsletters
International credit rating agency Moody's said late Friday it had completed its periodic review of Türkiye but took no decision on the country's credit rating.
Moody's published its assessment of the periodic review conducted July 16.
The agency said the review does not amount to a credit rating change and does not indicate whether a rating action will take place in the short term.
Moody's said Türkiye's credit rating is supported by the country's large, diversified and dynamic economy, as well as its low public debt burden.
The agency said Türkiye's track record of effective policy implementation has improved since mid-2023, particularly because of the Central Bank of the Republic of Türkiye's (CBRT) adherence to a monetary policy framework aimed at reducing inflationary pressures.
Moody's said the framework also addresses macroeconomic imbalances and gradually restores confidence in the Turkish lira among domestic depositors and foreign investors.
The agency said the increase in global energy prices since the start of conflicts in the Middle East has complicated Türkiye's disinflation process.
It expects inflation to stand at 29% at the end of 2026 and decline to 24% by the end of 2027.
Moody's said Türkiye's economic growth is projected to slow slightly to 3.4% in 2026 from 3.6% in 2025.
Growth is expected to accelerate again in 2027, largely because of fiscal stimulus ahead of elections to be held the following year, the agency said.
Moody's said Türkiye's credit rating could be upgraded if authorities continue to effectively implement policies and reforms that permanently restore macroeconomic stability.
It said an upgrade could also follow if Türkiye reduces its sensitivity to exchange rate and inflation shocks and achieves a structural decline in external vulnerability risks.
Moody's currently assesses Türkiye's credit rating at "Ba3" with a "stable" outlook.
The agency's calendar for this year listed Jan. 23 and July 24 as assessment dates for Türkiye.
However, the announcement of dates in annual calendars by international credit rating agencies does not mean a rating or outlook update will necessarily be issued. Agencies can also make assessments outside the dates specified in their calendars.
Set as preferred source
Set as preferred source
1 min read
1 min read
