The Fitch Ratings International rating agency increased the Turkish credit rating from B+and improved the forecast for the rating from the “stable” to “positive”.
Fitch Ratings announced its assessment of the state of the Turkish economy.
The statement published by the rating agency states that the long -term credit rating of Turkey in foreign currency is increased from “B” to “B+”, and the forecast for the rating is defined as “positive”.
According to this message, the increase in the rating is due to an increase in confidence in the stability and effectiveness of the policy, carried out after changes in June 2023, including more active than expected, tightening monetary policy aimed at reducing macroeconomic and external vulnerability.
Inflationary expectations decreased, and the risks of external liquidity have decreased, which reflects more favorable conditions for external financing, increasing reserves, reducing the volume of deposits protected by currency, and reducing the account of account of current operations.
A positive forecast reflects Fitch expectations that the general course of Turkish macroeconomic policy corresponds to a significant decrease in inflation and that external vulnerability continues to decline from the point of view of reducing the account of accounts of current operations and strengthening liquidity reserves.
It is expected that this year the growth rate of the Turkish economy will amount to 2.8 percent, the statement said, while noting that in 2025 the growth rate can increase to 3.1 percent.
The statement states that the results of local elections in March, as expected, will not lead to a change in policy.
On September 8, 2023, Fitch Ratings confirmed the Turkish credit rating at the “B” level and increased the forecast for the rating from “negative” to “stable” after 2 years.
According to the Fitch calendar, the following Turkey’s scheduled scheduled for September 6th.