Fitch Ratings Revises Türkiye’s Credit Outlook to Positive

(MENAFN) Fitch Ratings upgraded Türkiye’s long-term foreign-currency issuer default rating outlook to positive from stable on Friday, while maintaining the rating at “BB-.”

The international credit rating organization stated that the revision reflects “a further reduction in external vulnerabilities,” driven by faster-than-expected growth in foreign exchange reserves, enhanced reserve quality, a drop in foreign-currency contingent liabilities, and the continuation of relatively stringent macroeconomic policies.

The agency highlighted that gross foreign exchange reserves increased to $205 billion by mid-January, up from $155 billion at the close of 2024. Meanwhile, net reserves, excluding swaps, rebounded to $78 billion from minus $66 billion in March 2024.

Fitch Ratings also noted an improving external financing outlook, forecasting that external liquidity will approach 100% by 2027, rising from 80% at the end of 2024. This improvement is underpinned by Türkiye’s consistent access to external financing and a robust banking sector.

The ratings agency emphasized that Türkiye’s sizable and diversified economy, along with low government debt levels, continues to underpin the current rating.

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