Moody’s promotes Turkey to investment grade
Turkey’s credit rating has been lifted to investment grade by Moody’s for the first time in two decades, in recognition of reductions to its debt and current account deficits.
The ratings agency has lifted Turkey’s government bond ratings by one step to Baa3, the lowest investment grade, from Ba1. Its outlook was set at stable.
This puts Turkey’s credit rating at the same level as Spain, Colombia and India, Bloomberg reports.
In a statement, Moody’s said the ratings boost reflects “recent and expected future improvements in key economic and public finance metrics”.
It also cited Turkey’s “progress on structural and institutional reforms that Moody’s expects will reduce existing vulnerabilities to shocks to international capital flows over time”.
Turkey was last rated investment grade by Moody’s in 1994. Standard & Poor’s rates the country at BB+, or one level below investment grade.
This article was first published on Investment Week