Fitch Ratings Shared Turkey’s Credit Rating

Fitch Ratings shared Turkey’s credit rating. The organization has confirmed Turkey’s credit rating.

International credit rating agency Fitch Ratings announced Turkey’s credit rating and credit outlook after the market close on Friday, February 19. In the statement made by the organization, it was stated that the long-term foreign currency credit rating of Turkey was confirmed as "BB-" and the credit rating outlook was changed from "negative" to "stable". In the statement of Fitch Ratings, it was stated that Turkey’s return to a more consistent and orthodox policy with the new economic management helped mitigate the short-term external financing risks arising from falling international reserves, high current account deficit and worsening investor confidence in 2020, “Monetary policy has been tightened significantly. Following was stated; "International reserves stabilized, and the Turkish lira appreciated 18 percent against the dollar since early November.” In the statement made by the organization, it was pointed out that the Central Bank of the Republic of Turkey (CBRT) has made simplification in its monetary policy, and it was noted that investor sensitivity and the change in local actors caused a significant appreciation of the Turkish Lira, a decrease in the risk premium and some net capital inflows. In the statement, which also includes some predictions about the economy of Turkey, it was announced that the Turkish economy continued its positive growth movement after the strong recovery in the third quarter of last year and it is estimated to grow 1.4 percent in 2020. It was also stated that the Turkish economy is expected to grow by 5.7 percent in 2021, while the growth rate is predicted to be 4.7 percent in 2022. In addition, it was reported that inflation is expected to decrease to 11 percent by the end of 2021 and to 9.2 percent in 2022.