Turkey gets vote of confidence from Fitch Ratings
Fitch Ratings has given Turkey a vote of confidence by upgrading their credit ratings out of the junk category. The immediate effect is likely to be reduced borrowing costs for the Turkish government.
The official release from Fitch Ratings as published on their website was as follows:
“Fitch Ratings has upgraded the Republic of Turkey’s Long-term foreign currency Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BB+’ and the Long-term local currency IDR to ‘BBB’ from ‘BB+’. The Outlooks on the Long-term ratings are Stable. The upgrade to investment grade reflects a combination of an easing in near-term macro-financial risks as the economy heads for a soft landing and underlying credit strengths including a moderate and declining government debt burden, a sound banking system, favourable medium-term growth prospects and a relatively wealthy and diverse economy.”