By Diyar Guldogan
WASHINGTON (AA) - Moody’s Ratings said Friday it has completed its periodic review of Türkiye’s credit ratings.
The review, conducted by a rating committee on Jan. 15, reassessed Türkiye’s ratings in light of the agency’s sovereign methodology and recent economic and policy developments.
Moody’s stressed that the publication does not constitute a rating action and does not signal whether a change is likely in the near term.
"The Government of Turkiye's credit ratings, including its Ba3 long-term issuer ratings, are supported by its large, diversified and dynamic economy and its low government debt burden," it said.
The agency noted a marked improvement in policy effectiveness since mid-2023, particularly in the central bank’s adherence to tighter monetary policy.
"However, sustainably reducing imbalances and external vulnerabilities will take time, and the current policy stance remains subject to the risk of a reversal, which has receded but will remain present in the coming years," it added.
The agency projects inflation to ease to 22% year-over-year by the end of 2026 from 30.9% in December, although the risks remain "skewed" to the upside.
The stable outlook balances upside and downside risks to Türkiye's credit profile, it added.