Minister Simsek Turkey is the only country whose credit rating has been raised by two notches!
Treasury and Finance Minister Mehmet Şimşek announced that Turkey is the only country whose credit rating has been upgraded by two notches by three major international credit rating agencies. In his post on social media, Minister Şimşek emphasized that the positive developments in Turkey’s economy continue and that confidence in Turkey has increased in international markets.
Minister Şimşek evaluated Standard & Poor’s (S&P) upgrade of Turkey’s credit rating from “B+” to “BB-”. Stating that this increase is an indicator of the stability and rebalancing achieved in the Turkish economy, Şimşek said, “We are the only country whose rating has been raised by two notches by three major credit rating agencies this year.”
Economic Achievements and Positive Indicators
Şimşek elaborated on the reasons behind this credit rating increase and stated that the rebalancing in the economy, the decreasing current account deficit and external financing need, the stabilization of the Turkish lira, the increase in reserves and the disinflation process were effective. Emphasizing the decline in Turkey’s external borrowing costs, Şimşek said, “These positive developments we have achieved with our program have lowered our country risk premium and led to a significant improvement in our external borrowing costs.”
The minister said that the Turkish economy will continue to move forward with strong steps and that the markets also support these positive developments. “Our market indicators implying a higher rating suggest that positive developments will continue in the period ahead,” Şimşek said, underlining that Turkey’s economic performance will improve further in the international arena.
Impact of the Rating Increase on the Economy
Credit rating agencies’ upgrades to Turkey’s sovereign rating have important economic repercussions. Rating upgrades lower external borrowing costs for the country and increase international investors’ interest in Turkey. These developments facilitate the inflow of foreign resources into Turkey’s economy and contribute to the appreciation of the Turkish lira as the country’s risk premium decreases.
Şimşek emphasized that the two-notch increase in Turkey’s credit rating is a success achieved despite the challenging conditions in the global economy. He also noted that economic indicators such as the decline in the foreign trade deficit and the strengthening of reserves were welcomed by international markets. “Investor confidence is the result of our policies of stability and growth,” he said.
Disinflation and Reserve Strengthening
Minister Şimşek also emphasized the importance of the disinflation process and stated that the decline in inflation played a critical role in maintaining economic balances. Stating that the increase in reserves also positively affected foreign borrowing costs, Şimşek said that Turkey’s economic policies yielded concrete results. “We will continue to take the necessary steps for a stronger economy. Our market indicators signal that we will receive higher ratings in the future,” he said, signaling that the stability in the economy will continue.
International Confidence Growth
Credit rating agencies take political and economic stability into account when assessing the economic risks of countries. Turkey’s two-notch rating upgrade has boosted international investors’ confidence in the country. “This confidence increases the competitiveness of the Turkish economy worldwide,” said Minister Şimşek. Stating that their goal is to have a stronger economy and higher ratings, Şimşek said that Turkey will play a more effective role in global markets.
