{"id":11104,"date":"2024-07-22T14:53:17","date_gmt":"2024-07-22T11:53:17","guid":{"rendered":"https:\/\/stayinvestment.com\/?p=11104"},"modified":"2024-07-22T14:53:17","modified_gmt":"2024-07-22T11:53:17","slug":"moody-s-upgrades-turkey-s-credit-rating-by-two-notches-for-the-first-time","status":"publish","type":"post","link":"https:\/\/stayinvestment.com\/en\/news-en\/moody-s-upgrades-turkey-s-credit-rating-by-two-notches-for-the-first-time\/","title":{"rendered":"Moody&#8217;s Upgrades Turkey&#8217;s Credit Rating by Two Notches for the First Time"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">On July 18, 2024, the international rating agency Moody&#8217;s upgraded T\u00fcrkiye&#8217;s credit rating from B3 to B1 and maintained the outlook as &#8220;positive.&#8221; This is the first such sharp increase in the country&#8217;s history. Factors influencing the rating upgrade:<\/p>\n<p><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tightening of monetary policy: <\/b><span style=\"font-weight: 400;\">The Central Bank raised the key interest rate, which helped curb inflation and stabilize the lira.\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduction in budget deficit and public debt: <\/b><span style=\"font-weight: 400;\">The government successfully reduced the level of budget deficit and public debt.\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improvement in diplomatic relations between Turkey and the USA<\/b><span style=\"font-weight: 400;\"> also played a role.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><br \/>\nThe firm political stance significantly reduced high external vulnerability, and the positive outlook reflects the upward balance of risks. However, political risk remains a constraint on the rating.<\/span><\/p>\n<p><strong><br \/>\nForecasts and prospects:<\/p>\n<p><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">With increased confidence and the effectiveness of monetary policy, T\u00fcrkiye can once again draw attention to its key credit advantages: macroeconomic stability, strengthening institutions, a diversified and competitive economy, as well as strong budget and debt indicators. The credit rating may further increase if the authorities manage to sustainably reduce inflation, decrease dollarization, and strengthen the current account.<\/span><\/p>\n<p><b><br \/>\nPrevious forecasts:<\/p>\n<p><\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In January, Moody&#8217;s maintained T\u00fcrkiye&#8217;s credit rating at B3 and raised the outlook from stable to positive.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In March, Fitch Ratings upgraded T\u00fcrkiye&#8217;s credit rating from B to B+ and changed the outlook from stable to positive, reflecting the effectiveness of policies implemented since June 2023, including rapid monetary tightening and reduced macroeconomic and external vulnerabilities.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">S&amp;P upgraded T\u00fcrkiye&#8217;s credit rating from B to B+ following the May local elections. Coordination between monetary, fiscal, and income policies is expected to improve due to the effect of external balancing after the elections. An increase in portfolio investment inflows, a reduction in the current account deficit, and a decrease in inflation and dollarization are forecasted over the next two years.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><br \/>\nStatement by Treasury and Finance Minister Mehmet \u015eim\u015fek noted his <a href=\"https:\/\/x.com\/memetsimsek\/status\/1814403456473374869\">post on platform X<\/a>: <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><em><span style=\"font-weight: 400;\">&#8220;Moody&#8217;s has raised our credit rating by two notches for the first time! Moody&#8217;s, which upgraded our country&#8217;s credit rating after 11 years due to our implemented program, maintained the positive outlook. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Economic balancing, reduction of external financing needs, an increase in international reserves, and the deflation process played a role in the rating upgrade. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Maintaining a positive outlook reflects confidence in our program and indicates potential for further rating upgrades. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">We will continue to pursue a rules-based and predictable policy that will enhance the resilience of our economy.&#8221;<\/p>\n<p><\/span><\/em><\/p>\n<p><strong>Impact of the rating upgrade:<\/p>\n<p><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">For T\u00fcrkiye, the rating upgrade means lower borrowing costs on international markets and new opportunities. It also makes the country more attractive for economic investments and contributes to the strengthening of the lira. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Investments in Turkish real estate remain a reliable tool for preserving and increasing funds. Stay Investment offers exclusive investment packages for real estate and construction investments. For consultation, send a message in the online chat on the website or contact the representative office in your country through the Contacts section.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On July 18, 2024, the international rating agency Moody&#8217;s upgraded T\u00fcrkiye&#8217;s credit rating from B3 to B1 and maintained the outlook as &#8220;positive.&#8221; This is the first such sharp increase in the country&#8217;s history. Factors influencing the rating upgrade: Tightening of monetary policy: The Central Bank raised the key interest rate, which helped curb inflation [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":11099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Moody&#039;s Upgrades Turkey&#039;s Credit Rating by Two Notches for the First Time - Stay Investment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/stayinvestment.com\/en\/news-en\/moody-s-upgrades-turkey-s-credit-rating-by-two-notches-for-the-first-time\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Moody&#039;s Upgrades Turkey&#039;s Credit Rating by Two Notches for the First Time - Stay Investment\" \/>\n<meta property=\"og:description\" content=\"On July 18, 2024, the international rating agency Moody&#8217;s upgraded T\u00fcrkiye&#8217;s credit rating from B3 to B1 and maintained the outlook as &#8220;positive.&#8221; This is the first such sharp increase in the country&#8217;s history. 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