S&P on Friday affirmed Turkey's long-term foreign currency rating at "B+", and long-term local currency rating at "BB-," with a stable outlook.
The stable outlook considers the risks from Turkey's economic imbalances, but these are partly offset by the resilience of Turkey's private sector and the manageable stock of net general government debt, the global rating agency said.
"Our ratings on Turkey remain supported by its diversified economy and resilient and adaptive private sector, which, in the past, has weathered external shocks, currency volatility, and frequent changes in economic policy," it said in a statement.
"Turkey's economy has recovered faster than those of other emerging markets, with real output already 8.4% above the pre-pandemic peak as of the second quarter of 2021," it added.
The agency said it expects Turkey's economy to expand by 8.6% this year with a strong recovery in exports and resilience of domestic activity to the pandemic.
It said Turkey's credit rating would be upgraded if the balance of payments are strengthened, especially the central bank's net foreign exchange reserves.
The rating would be revised up if there is effectiveness in monetary policy.
