Türkiye becomes S&P’s standout with two-level rating hike
Türkiye has become the only country this year to receive a two-notch upgrade from the three major credit rating agencies, a distinction highlighted by Treasury and Finance Minister Mehmet Şimşek.
Following Standard & Poor's (S&P) decision to elevate Türkiye’s credit rating from B+ to BB-, Şimşek praised the country’s economic achievements, Caliber.Az refers to reports by Turkish mediaş
“Our market indicators point to a higher rating, signalling these positive trends are likely to continue,” Şimşek shared on social media.
Şimşek attributed the upgrade to Türkiye’s reinforced economic stability, marked by a reduced current account deficit, stabilized lira, increased reserves, and a consistent focus on inflation control. He added that these efforts have also lowered Türkiye’s country risk premium and improved external borrowing costs.
The upgrade, with a stable outlook, reflects a robust Turkish economy supported by the Central Bank of Türkiye’s tightened monetary policy, which has stabilized the lira, reduced inflation, and encouraged a de-dollarization trend. S&P noted that the savings gap has narrowed, with the current account deficit down approximately 4% of GDP since 2022.
S&P’s stable outlook suggests confidence in Türkiye’s ability to balance inflation control, manage wage expectations, and steer broader economic rebalancing over the next year.
The agency has cautioned that future rating adjustments will depend on Türkiye’s continued progress in managing inflation and financial stability. A downgrade could occur if pressures on financial stability intensify, while sustained success in reducing inflation and boosting confidence in the lira could lead to a further upgrade.
Looking ahead, S&P projects that Türkiye’s GDP growth will moderate to 2.3% by 2025, down from 3.1% this year, influenced by tighter credit conditions and reduced labor demand. However, growth in exports of goods and services is expected to support a gradual economic recovery beginning in 2026.
By Tamilla Hasanova