Turkiye – Ratings Upgraded; Outlook Revised to Stable

Ref: TR2 4 CRA00-0 2 15 November 2024

Turk iye – Ratings Upgraded; Outlook Revised to Stable

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has upgraded Turkiye’s Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) to ‘BB- ’ from ‘B’. At the same time, CI Ratings has affirmed the Short-Term (ST) FCR and ST LCR at ‘B’. The Outlook on the r atings is revised to Stable from Positive.

Rating Drivers

The upgrade reflects the implementation of more consistent and prudent monetary and fiscal policies, as well as the subsequent reduction in macroeconomic imbalances and improv ement in i nternational liquidity . The tighter overall policy stance has contributed to declining inflation and greater confidence in the Turkish Lira , resulting in a further decline in dollarization and the speed y unwinding of the FX-protected deposit scheme. Gross and net…