Moody`s upgrades Turkey`s rating on debt cuts

Credit rating agency Moody`s has upgraded Turkey`s rating by one notch to investment grade and has assigned a stable outlook for the first time in 20 years as the government reduced its debt and current-account deficits.

Moody`s Investors Service has today upgraded Turkey`s government bond ratings by one step to Baa3, the lowest investment grade, from Ba1. Moody`s said the reason of upgrading Turkey`s rating is the "recent and expected future improvements in key economic and public finance metrics."     

The first driver underlying Moody`s decision to upgrade Turkey`s sovereign rating to Baa3 is the recent improvement in the country’s economy, where Turkey`s debt has fallen by 10 percent to a manageable 36% of GDP since 2009. Moody`s expects this decline to continue in the coming years.