3/11/2024
Fitch Ratings Raised Türkiye's Credit Note
International credit rating agency Fitch Ratings has raised Türkiye's credit note from "B"to "B+", note outlook from "stagnant" to "positive"...
Fitch Ratings has announced its assessment on Türkiye economy. In the announcement made by credit rating agency, it is noted that Türkiye's long term foreign currency denominated credit note raised from "B" to 'B+', note outlook set to be "positive. In the announcement it is noted that subject note increase is originated from trust felt for sustainability and efficiency of policies pursued since the change in June 2023, included in higher preload monetary policy tightening than expected made for reducing macroeconomic and external fragilities. In the announcement, inflation expectations are noted to be eased and foreign liquidity risks decreased, that this is the reflection of more positive foreign financing conditions, higher reserves, lower foreign currency protected savings and narrowing current transactions deficit. In the announcement, positive outlook is noted to be expected to be compatible with Fitch's that Türkiye's general macroeconomic policy position is compatible with notable decrease in inflation and reflected the expectations that in terms of lower current deficit and stronger liquidity bumpers the fragilities to continue to decrease. Türkiye economy expected to grow 2.8% this year, growth rate might be 3.1% in 2025, said in the announcement. In the announcement, it is noted that result of local elections in March expected to lead no policy change. Fitch Ratings had confirmed Türkiye's credit note as "B" on 8 September 2023, note outlook had been raised to “stagnant” from “negative” after 2 years. In accordance with Fitch's calendar, next assessment on Türkiye planned to be made on 6 September.
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