Sabah – Moody's Investors Service has upgraded Turkey's government-bond ratings to Baa3 from Ba1, while assigning a stable outlook. The agency’s lifting of the country’s credit rating by one notch to ‘investment grade’ became the second such move in the last 6 months after Fitch’s upgrade late last year.
Citing structural improvements in the country’s economy and public finances, Moody’s statement on the rating upgrade read, ‘Since the beginning of 2009, Turkey's debt burden has fallen by 10 percent to a manageable 36 percent of GDP, and Moody's expects this decline to continue in the coming years.’ The agency also credited the Turkish government with structural and institutional reforms that are expected to reduce vulnerabilities to external shocks.
“Although late, this is a welcomed decision.”, Turkey’s Deputy Prime Minister, Ali Babacan, said in a statement released after the upgrade, stating that Turkey has long taken all the right steps to bring its economy in line with countries having investment grade ratings. “Market indicators and credit rating are now more in line…” Babacan remarked.
Turkey’s Minister of Finance Mehmet Simsek said that the upgrade will facilitate international financing for Turkey’s treasury and Turkish companies while reducing the burden of borrowing and contributing to the country’s long-term growth.