Negative rating action on Turkiye – drivers and next steps

Moody’s has downgraded Turkiye’s rating to B3 from B2 previously, and changed the outlook to stable from negative. This action was prompted by heightened macroeconomic risks following very high and still increasing inflation numbers in the first half of 2022, and comes against the backdrop of a much more challenging external environment given an expected economic slowdown in key trading partners and tighter global financing conditions.

  • What are the key drivers of the downgrade?
  • With energy prices surging what is the outlook for Turkiye’s current account and external financing options? 
  • What are Moody’s expectations for economic growth, given the economic slowdown and likely recession in Europe?
  • How is the government’s fiscal position evolving?
  • Speakers keyboard_arrow_down
    Dietmar Hornung Associate Managing Director, Sovereign Risk Group Moody's Investors Service Bio
    Kathrin Muehlbronner Senior Vice President, Global MDB Lead, Sovereign & Sub Sovereign Risk Moody's Investors Service Bio
    Berke Batman Associate Analyst 2 Moody's Investors Service
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