S&P Global Ratings affirmed its unsolicited “BB-/B” foreign and local currency long- and short-term sovereign credit ratings on Türkiye, with the outlook stable.
“The stable outlook reflects our view that Türkiye’s economy will weather the ongoing energy price shock, assuming that authorities persevere with tight monetary and wage-setting policies and avoid additional depletion of foreign exchange (FX) reserves,” said S&P in a statement.
The affirmation reflects S&P’s view that, despite the balance of payment and inflationary pressures from higher energy prices, Türkiye authorities will implement economic and fiscal policies in line with the 2026-2028 Medium Term Program objectives, it added.
“We could raise the ratings should Türkiye’s FX reserves recover and were there further progress in lowering inflation to single-digit figures while restoring long-term confidence in the Turkish lira,” said S&P.
“We could lower the ratings if pressures on Türkiye’s balance of payments, financial stability or government finances were to intensify, for example, due to persistently high global energy prices or domestic economic policy shifts, resulting in an unabated currency depreciation, increased dollarization, and renewed declines in FX reserves,” it added.
