S&P confirms Turkey’s credit rating at B, edits outlook to 'stable'

(MENAFN) On Friday, Standard & Poor's (S&P) US-founded credit ratings company confirmed Turkey’s credit rating at B and edited its outlook from "negative" to "stable."

The company declared that the steady outlook indicates "balanced risks" on Turkey’s creditworthiness following a resume of conventional monetary policy settings as the Central Bank increases interest rates.

"In an effort to disinflate and de-dollarize the economy, the Central Bank, under new leadership, has raised the key one-week repo rate by 21.5 percentage points since June, to 30 percent. To offset fiscal deterioration, the Treasury has introduced indirect taxes," the international rating company stated in a declaration.

"We believe that by 2026, absent renewed political uncertainty, the new team can rebalance Turkiye's economy away from external debt financed consumption and toward more balanced external and fiscal accounts, as well as more acceptable levels of inflation. Risks to this adjustment — both political and economic — are balanced," it added.

MENAFN01102023000045015839ID1107170891