Turkiye – Ratings Affirmed; Outlook Remains Stable

Ref: TR2 3 CRA00-0 2 17 November 2023

Turkiye – Ratings Affirmed; Outlook Remains Stable

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Turk iye ’ s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘ B ’ . At the same time, t he sovereign ’ s Short-Term (ST ) FCR and ST LCR have been affirmed at ‘ B ’ . The Outlook for the r atings remains Stable.

Rating Drivers

The ratings reflect the moderate easing of pressure on gross foreign exchange reserves since the start of monetary policy normali s ation in June , as well as improved confidence in the Lira despite the gradual unwinding of the FX protected lira deposit scheme. While CI views the revers al to conventional macroeconomic policies and monetary policy normalisation as positive factor s that could stabilise the economy in the medium term, uncertainty over the pace,…