Turkiye – Ratings Affirmed; Outlook Remains Stable

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Turkiye’s Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) at ‘BB-’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term (ST) FCR and ST LCR at ‘B’. The Outlook on the ratings remains Stable.

Rating Drivers

The ratings reflect the continued implementation of more consistent and prudent monetary and fiscal policies, along with the resulting improvement in macroeconomic stability. The tighter overall policy stance has contributed to declining inflation and greater confidence in the Turkish Lira (the latest depreciation notwithstanding), resulting in lower dollarisation and the speedy unwinding of the FX-protected deposit scheme. The ratings are supported by Turkiye’s large and diversified economy, strong manufacturing export base, and the low level of general government debt. The ratings take into consideration the…