(Bloomberg) -- Moody’s Investors Service raised Turkey’s outlook to positive from stable, citing a “decisive change” in economic policy undertaken by authorities. 

The company affirmed the rating on Turkey’s government debt a B3, six notches below investment grade and in line with Angola and Barbados. The return to orthodox monetary policy improves the prospect for reducing the nation’s major macroeconomic imbalances, analysts Kathrin Muehlbronner and Dietmar Hornung wrote in a Friday statement.

“While headline inflation is likely to rise further in the near term, there are signs that inflation dynamics are starting to turn, indicative of monetary policy regaining credibility and effectiveness,” they wrote. 

Moody’s was quick to laud Turkey’s shift to a mainstream economic policy following last year’s elections, saying that its assessment of the country’s creditworthiness could improve rapidly if Turkey stuck to the new plan. More recently, it warned an outsize minimum-wage increase could undermine the expected slowdown in inflation.  

Read more: Turkey’s 49% Minimum Wage Hike Balances Between Unions, Markets

Turkish policymakers led by Finance Minister Mehmet Simsek have been calling for a ratings upgrade, criticizing Moody’s and others for falling behind markets with their assessment of Turkey.

Investors’ perception of risk in Turkish debt — gauged by credit-default swaps — has improved since Simsek took over Turkey’s economy last year and put in place market-friendly policies. The central bank — also under a new governor — has raised the cost of borrowing by 34 percentage points to 42.5% during the same period.

Before Simsek took over, inflation was showing signs of getting out of control, thanks in part to Turkish President Recep Tayyip Erdogan’s push to prioritize growth at all costs.

In September, Turkey’s credit outlook was lifted to stable from negative by Fitch Ratings, which scores the country at B, five notches below investment grade. S&P Global Ratings raised the country’s rating outlook to positive in December, affirming sovereign rating at B.

--With assistance from Maria Elena Vizcaino.

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