S&P raises Turkey's credit rating

The international credit rating agency S&P raised Turkey’s credit rating from B to B+, with a positive outlook. The international credit rating agency S&P raised Turkey’s credit rating from B to B+, maintaining a positive outlook. The statement indicated that it is thought that coordination between monetary, fiscal and income policies will improve due to the external balancing following the local elections in Turkey, and that portfolio inflows will increase, current account deficits will narrow, and inflation and dollarization are predicted to decrease in the next 2 years. The statement indicated that Turkey’s credit rating could be increased if policy makers manage to reduce inflation and re-establish confidence in the lira in an environment where the current account deficit narrows and dollarization reverses. The statement also included estimates for the country’s economy, and indicated that the Turkish economy is expected to grow by 3 percent this year and next year. The statement reported that consumer price increases in the country are estimated to be 55.8 percent this year and 27.3 percent next year. S&P confirmed Turkey’s credit rating at “B” last December, while revising the outlook from stable to positive. Another rating agency, Moody’s, revised the outlook from stable to positive in January, and Fitch Ratings raised Turkey’s credit rating in March.