S&P announced the decision of Türkiye. The institution confirmed Türkiye’s long-term credit rating at the ‘BB-‘ ‘level and confirmed the appearance of grades as “stable”.
The note said that despite the recent increase in exchange rate volatility and decrease in foreign exchange reserves, it reflects our opinion that authorities in Türkiye maintain policies to reduce high inflation and reduce dollarization.
“The stagnant appearance reflects our view that the current economic team will maintain strict monetary policy and thus balance the risks of implementation associated with the government’s medium -term program in the face of internal and external tensions.” said.
In March, recent protests against the arrest of opposition leaders, investor and household confidence, as well as foreign exchange stability and growth may be a long -term obstacle.
Real Effective Exchange Exchange rate may affect the export activity of the recent value earnings, “Therefore, investment expenditures are expected to decrease and unemployment is expected to increase, 2.7 percent GDP growth forecast is subject to risks” was evaluated. The growth forecast of the institution for 2026 is 2.9 percent.
Türkiye’s financial stability or in a broader sense of public financial pressures, especially anti-inflationist policies reversal and net foreign exchange reserves in the event of intensifying the grade can be reduced.
Inflation ratio convergence to single -digit figures, Turkish Lira and more generally domestic capital markets long -term confidence in the re -establishment of the grade may rise in the event of more progress.
