site.btaS&PGR Upgrades Turkiye to B+ with Positive Outlook

S&P Global Ratings (S&PGR) upgraded Turkiye's credit rating from B to B+ on economic rebalancing, keeping its outlook positive, the Anadolu Agency reported on Saturday.

The Turkish news agency quoted the New York-based ratings firm as saying in a press release late on Friday that Turkiye is expected to improve coordination between monetary, fiscal, and incomes policy, amid external rebalancing.

"We forecast rising portfolio inflows and narrowing current account deficits over the next two years, alongside declining inflation and dollarization, although progress will be slow and reserve accumulation modest as the central bank limits depreciation of the Turkish lira," S&PGR said, as quoted by the Anadolu Agency.

After President Recep Tayyip Erdogan was reelected in May 2023, Turkiye gave up its untypical low-interest policy in favour of an austerity approach. The country's base interest rate was raised from 8.5% in June 2023 to 50% in April 2024.

Annual inflation in Turkiye reached 69.8% in April 2024 compared with 68.5% in March 2024.