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S&P upgrades Türkiye’s rating to BB- from B+, maintains stable outlook

02 November 2024 07:20 (UTC +04:00)

Credit rating agency Standard & Poor's (S&P) raised Türkiye's long-term sovereign credit rating to BB- from B+ with a stable outlook on Friday, APA reports citing Daily Sabah.

"The Central Bank of the Republic of Turkiye's (CBRT's) tight monetary stance has enabled Turkish authorities to stabilize the lira, bring down inflation, rebuild reserves, and de-dollarize the financial system," it said in a statement.

"Turkiye's savings gap with the rest of the world has narrowed, which is visible in the approximately 4 percentage points of GDP decline in the current account deficit since 2022," it added.

S&P said it projects real GDP growth easing to 2.3% in 2025, down from 3.1% this year, amid tighter credit conditions and lower labor demand.

Those are expected to be partly offset by stronger exports of goods and services.

The rating agency expects a gradual economic recovery to take hold beginning in 2026.