NEW YORK

Moody’s on Friday upgraded Türkiye’s credit rating from B1 to Ba3 and revised its outlook from positive to stable.

“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 international credit rating agency said in a statement.

“The upgrade also reflects the view that the risk of a policy reversal has receded, although it will remain present in the coming years,” it added.

Moody’s noted that maintaining the current policy path and advancing planned structural reforms could further enhance Türkiye’s resilience to external shocks, particularly by reducing its energy import dependence and increasing the competitiveness of exports.

It simultaneously raised the country’s local-currency ceiling to Baa3 and foreign-currency ceiling to Ba2, citing improvements in policy credibility while also warning of lingering vulnerabilities tied to foreign exchange buffers and potential policy shifts.