ISTANBUL, Jan 8 (Reuters) - Ratings agency Moody's on Tuesday upgraded Turkey's government rating to Ba2/stable from Ba3/positive, citing growing confidence in Turkey's financial shock absorption capacity.
It added the foundation for long-term growth looked robust.
Turkish stocks <.XU100> rose as much as 1.25 percent and the yield on the Turkish benchmark bond <0#TRTSYSUM=IS> fell to 8.55 percent from a previous close of 8.85 percent after the move.
The lira
Moody's had put its Turkey rating on positive watch last September. Last December Fitch upgraded Turkey to just below investment grade, in a move analysts saw as long overdue, with other ratings agencies expected to follow suit.