Ankara: Moody's on Friday upgraded Trkiye's credit rating from B1 to Ba3 and revised its outlook from positive to stable. The upgrade marks a significant acknowledgment of the country's recent effective policymaking and economic management strategies.

According to Anadolu Agency, the international credit rating agency stated, "The upgrade reflects the strengthening track record of effective policymaking, more specifically in the central bank's adherence to monetary policy that durably eases inflationary pressures, reduces economic imbalances, and gradually restores local depositor and foreign investor confidence in the Turkish lira."

The agency further elaborated that the risk of a policy reversal has diminished, although it acknowledged that such risks will persist in the coming years. The upgrade is also seen as a reflection of efforts to maintain the current policy direction and implement planned structural reforms that could strengthen Trkiye's resilience to external shocks. These efforts include reducing energy import dependence and increasing export competitiveness.

In conjunction with the credit rating upgrade, Moody's raised Trkiye's local-currency ceiling to Baa3 and the foreign-currency ceiling to Ba2. This decision was based on improved policy credibility, though the agency cautioned about ongoing vulnerabilities related to foreign exchange buffers and potential policy changes.