Türkiye’s Credit Outlook Upgraded to Positive

(MENAFN) Fitch Ratings elevated Turkey's long-term foreign-currency issuer default rating outlook on Friday, shifting it to positive from stable while keeping the "BB-" rating intact.

The global credit assessor attributed the upgrade to "a further reduction in external vulnerabilities," propelled by foreign exchange reserve accumulation that exceeded projections, enhanced reserve quality, decreased foreign-currency contingent liabilities, and sustained macroeconomic tightening measures.

Gross foreign exchange holdings surged to $205 billion by mid-January from $155 billion at 2024's close, the agency observed. Meanwhile, net reserves—when swap arrangements are excluded—rebounded to $78 billion, a dramatic reversal from the minus $66 billion recorded in March 2024.

Fitch also highlighted strengthening external financing dynamics, forecasting external liquidity will climb to approximately 100% by 2027 from 80% at the conclusion of 2024. This projection rests on Türkiye's demonstrated ability to maintain external financing access and its robust banking infrastructure.

Türkiye's expansive, diversified economic base combined with minimal government debt levels remain foundational pillars supporting the rating, the agency noted.

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