The ratings provided by credit rating agencies have become important indicators for national economies.

Although there are over a hundred credit rating agencies worldwide, Moody's, Standard & Poor's (S&P), and Fitch stand out as dominant players in this market. It's safe to say that these agencies shape the rating market.

So, how did Türkiye's journey with credit rating agencies begin?

THE STORY BEHIND Türkiye'S RATINGS FROM CREDIT RATING AGENCIES

Türkiye's process of receiving ratings from credit rating agencies began in 1991.

Following the liberalization of capital movements in the Turkish economy starting in 1989, significant international capital inflows occurred.

Meanwhile, as borrowing from global financial markets began, Türkiye's credit rating process started with the ratings required for this borrowing from credit rating agencies.

During this process, Türkiye made a good start with the first investment-grade ratings it received from credit rating agencies in 1992 and 1993. However, due to the economic crisis in 1994, S&P and Moody's downgraded Türkiye's investment-grade rating (BBB) to speculative grade (B+).

The other rating agency, Fitch, had downgraded Türkiye's investment-grade rating (BBB) to speculative grade (BB-) in 1995.

Türkiye REGAINED INVESTMENT-GRADE RATING IN 2012

After 18 years between 1994 and 2012, Fitch upgraded Türkiye's credit rating back to the investment-grade BBB level in 2012, while Moody's did so in 2013.

However, Standard & Poor's has not given an investment-grade rating to Türkiye since 1994.

Immediately after the FETÖ coup attempt and in 2017, Moody's and Fitch downgraded Türkiye's credit rating below the investment-grade level.

Last week, Fitch announced that it raised Türkiye's credit rating from "B" to "B+" below the investment grade, while also upgrading the outlook from "stable" to "positive".

ARE THE RATINGS FROM CREDIT RATING AGENCIES IMPORTANT?

Although the ratings provided by credit rating agencies may not always be fair and transparent, and confidence in these ratings may be low, the ratings these agencies provide significantly affect the entry of international funds into countries, the flow of direct international investments, the country risk premium, and borrowing interest rates.