International credit rating agency Fitch Ratings increased Turkiye’s credit rating from “B” to “B+” and increased its rating outlook from “stable” to “positive”.
Fitch Ratings announced its assessment of the Turkish economy.
In the statement made by the credit rating agency, it was stated that Turkiye’s long-term foreign currency credit rating was increased from “B” to “B+” and the rating outlook was determined as “positive”.
In the statement, it was reported that the rating increase in question resulted from increased confidence in the durability and effectiveness of the policies implemented since the change in June 2023, including the greater than expected front-loading of monetary policy tightening in reducing macroeconomic and external vulnerabilities.
In the statement, it was stated that inflation expectations have eased and external liquidity risks have decreased, and that this situation reflects more positive external financing conditions, high reserves, low foreign currency protected deposits and a narrowing current account deficit.
In the statement, it was stated that the positive outlook reflects Fitch’s expectation that Turkiye’s general macroeconomic policy stance will be consistent with the significant decline in inflation and that external vulnerabilities will continue to decrease in terms of a lower current account deficit and stronger liquidity buffers.
It was stated in the statement that the Turkish economy is expected to grow by 2.8% this year, and the growth rate could increase to 3.1% in 2025.
In the statement, it was stated that the result of the local elections in March is not expected to lead to a change in policy.
While Fitch Ratings confirmed Turkiye’s credit rating as “B” on September 8, 2023, it increased the rating outlook from “negative” to “stable” after 2 years.
According to Fitch’s calendar, the next assessment regarding Turkiye is planned to be made on September 6.
Source: Trthaber / Prepared by Irem Yildiz