(MENAFN) A senior director in Fitch Ratings' sovereigns group and primary analyst for Turkey stated that the agency has "greater confidence" in the durability of Turkey's current economic policy pivot. This statement indicates Fitch Ratings' assessment of Turkey's recent economic policy changes as being more sustainable and reliable.
“Regarding the effectiveness of the policy shift, improving reserve levels, reduced contingent liability in terms of effects of protected deposits without increasing dollarization, reduced current account deficit and easing inflation expectations, these developments warrant the rating that we took on Friday,” Erich Arispe Morales reported to a Turkish news agency.
Morales announced that Fitch Ratings elevated Turkey's credit rating from 'B' to 'B+' and revised its outlook from stable to positive the previous week. This upgrade signifies an improvement in Turkey's creditworthiness and reflects positively on the country's economic outlook.
“It reflected our assessment that the policy pivot was consistent with reducing the risk of macroeconomic and financial instability. Since then, we have greater confidence that the current policy pivot is more durable,” he further mentioned.
“The market has opened not only for the sovereign but also we saw that banks and corporates also accessing external financing after the policy pivot,” the analyst declared.
He emphasized that there have been "welcome developments" in the Turkish economy, notably the decrease in Turkey's five-year credit risk premium. This reduction indicates a positive trend in market sentiment towards Turkey's creditworthiness and economic stability.
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