Daily Management Review

S&P upgrades Turkey's ratings to 'B+' from 'B'


According to the organization, double-digit inflation will persist in the nation until early 2028.

Turkey's long-term foreign and local currency ratings were upgraded from "B" to "B+" by S&P Global Ratings. The ratings outlook is "positive," according to a news statement from S&P.

The agency's experts say that they "expect the Turkish authorities to persistently fight inflation by tightening monetary policy and gradual fiscal consolidation after the country's municipal elections."

S&P projects that during the next two years, Turkey's current account deficit will decline in tandem with declining inflation and a deceleration of the country's economic dollarization. In the meanwhile, the analysts at the agency expect that the nation's inflation rate will stay in the double digits through the start of 2028.

According to S&P, the Turkish Central Bank is expected to maintain the key interest rate at its current level of 50% through the end of 2024.

source: reuters.com