Türkiye pursues rating raise in November with boosting net reserves, tightening account deficit
Date
9/24/2024 4:53:07 AM
(MENAFN) Türkiye might witness a fresh rating upgrade in November with its enhancing net foreign currency reserves and swiftly tightening current account deficit.
Since the change Türkiye has occurred in its macroeconomy policies throughout the year, the nation experienced the biggest global credit rating agencies' upgrade decisions.
Fitch Ratings revised up Türkiye previously in September to 'BB-' maintaining stable outlook following its rating upgrade decision in March 2024.
Additionally, Moody's upgraded Türkiye's sovereign credit rating 'B1' from 'B3', with a positive outlook, to mark the initial upgrade decision in 10 years while S&P Global Ratings raised Türkiye to 'B+' on financial rebalancing with positive outlook.
Moreover, S&P Global Ratings is set to declare its second valuation on Türkiye on early November.
The sovereign ratings senior director at S&P Global Ratings, Frank Gill, stated to a Turkish news agency in an exclusive interview: "A few credit metrics for Turkish economy have improved, particularly external indicators. We estimate that net foreign currency reserves at USD105 billion are well over twice of what it was last year."
Based on S&P's meaning of net reserves, it eliminates foreign currency borrowed from local citizens like national commercial banks, by deducting banks' foreign currency deposits at the Turkish Central Bank and deducting banks foreign currency forwards loaning to the Central Bank as well.
"We consider this definition of net reserves best measures the reserves available to the Central Bank to meet unexpected net external financing, and or to intervene in domestic foreign currency markets," the senior explained.
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