Moody’s has upgraded Türkiye’s credit rating from B1 to Ba3 and revised its outlook 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 rating agency said in a statement.
It added that the risk of a policy reversal has diminished. "The upgrade also reflects the view that the risk of a policy reversal has receded."
Moody’s said that maintaining the current policy path and advancing structural reforms could boost Türkiye’s long-term resilience, especially by cutting energy import dependence and increasing export competitiveness.
In parallel, it raised Türkiye’s local-currency ceiling to Baa3 and its foreign-currency ceiling to Ba2, citing better policy credibility.

Meanwhile, rating agency Fitch has projected that the Turkish economy will grow 2.9% in 2025, 3.5% in 2026 and 4.2% in 2027.
The agency said a "sustained decline in inflation that reduces the gap with rating peers underpinned by enhanced policy credibility, and a lower risk of renewed macro-instability" could lead to an upgrade.
It added that a "significant strengthening of the sovereign's external buffers" could also positively affect Türkiye’s rating.