Key Facts
• On July 25, Moody’s upgraded Turkey’s credit rating from B1 to Ba3.
• Reasons include improved monetary policy credibility, reduced inflation, and economic imbalances.
• Inflation dropped from 72% a year ago to 35% as of June 2025.
• Turkey’s central bank raised interest rates to combat inflation and stabilize the lira.
• Moody’s cited stronger adherence to policies easing inflationary pressures.
• Credit outlook changed from “positive” to “stable” due to political and external risks.
• Fitch maintained Turkey’s rating at BB- with a “stable” outlook.
Summary
Moody’s upgraded Turkey’s credit rating to Ba3, reflecting improved monetary policy credibility, reduced inflation, and economic stabilization. Inflation fell significantly from 72% to 35% within a year, supported by higher interest rates and restrained lending. However, Moody’s adjusted Turkey’s credit outlook to “stable,” citing persistent political and external risks. Meanwhile, Fitch maintained its BB- rating with a “stable” outlook. These developments follow Turkey’s return to orthodox economic policies under President Erdogan’s leadership after his 2023 re-election.
