Fitch Upgrades Turkey’s Credit Rating

Turkey’s Credit Rating Upgraded by Fitch, Moody’s, and S&P

In a positive turn of events for the Turkish economy, credit rating agency Fitch has increased Turkey’s credit rating from “B” to “B+” and changed the country’s credit outlook from “stable” to “positive”. This decision reflects the confidence in the Turkish economy and the effectiveness of the policies implemented by the economic management.

The steady rise of the Turkish economy is attributed to the determined steps taken by the economic management and the successful implementation of the Medium Term Program. International organizations have also recognized the financial and monetary reforms implemented by Turkey. The strong growth, increasing foreign exchange reserves, robust employment, and rapidly growing export figures have all contributed to the positive evaluation by credit rating agencies.

Fitch’s statement highlighted the increased confidence in the durability and effectiveness of Turkey’s economic policies. The agency noted that inflation expectations have eased, external liquidity risks have decreased, and positive external financing conditions are prevailing. Additionally, high reserves, low foreign currency protected deposits, and a narrowing current account deficit were also mentioned as factors contributing to the improved credit rating.

In addition to Fitch, Moody’s and S&P Global Ratings have also raised Turkey’s credit outlook. Moody’s confirmed Turkey’s credit rating as “B3” and changed the rating outlook to “positive”. Meanwhile, S&P Global revised Turkey’s credit rating outlook from stable to positive and confirmed the foreign and local currency credit ratings as “B”.

S&P emphasized that further improvements in the balance of payments could lead to a potential increase in Turkey’s credit rating in the next 12 months. If the balance of payments results improve, leading to faster foreign exchange reserve accumulation and a decrease in dollarization, S&P may consider increasing the country’s long-term rating by one notch.

Overall, these positive developments in Turkey’s credit ratings from Fitch, Moody’s, and S&P reflect the growing confidence in the Turkish economy and its potential for continued growth and stability in the future.

 

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