Moody's Warned About Turkey's Credit Rating

Moody's Turkey Assessment: Positive Momentum in Credit Rating Halted

Moody's Senior Credit Officer for Country Risk Group Alexander Perjessy stated that the positive momentum in Turkey's credit rating has come to a halt. Referring to the performance of the Central Bank of the Republic of Turkey (CBRT), Perjessy expressed that the independence of economic institutions has not been sufficiently enhanced.

Disinflation Process and Political Tension

Perjessy highlighted that the disinflation process has noticeably slowed down and that political tensions could have adverse effects on the macroeconomic stability gains. He pointed out that political uncertainties have the potential to undermine investor confidence in Turkey, stating:

“Political developments could complicate the implementation of monetary policy. Institutions in Turkey are weaker compared to similar countries and are more vulnerable to political interventions.”

Foreign Exchange Reserves and Economic Difficulties

Perjessy added that ongoing economic difficulties and the weak trend of foreign exchange reserves may require more economic challenges and slowdowns to control inflation. This situation is a significant factor for investors in assessing the market.

In light of the evaluations made, Turkey's economic situation and political developments require careful monitoring by investors.