In its latest report, the international credit rating agency Fitch Ratings upgraded Turkey’s long-term credit rating from “B” to “B+” and changed the credit outlook from “stable” to “positive.”
This marks the first increase in Turkey’s credit rating by Fitch after a 12-year hiatus.
Fitch’s report highlighted that the tight monetary policy followed by the Central Bank of Turkey after last year’s elections and the subsequent interest rate hikes were the main factors contributing to the upgrade. It was also noted that the continuation of policy normalization and the formation of more confidence in a sustainable and visible reduction in inflation could lead to further upgrades.
The report also mentioned that the Central Bank’s reserves reached $131 billion at the beginning of March, an increase of $32 billion compared to June of the previous year.
Despite the reserves’ structure still being weak, the net reserves improved from a negative $76 billion last year to negative $62 billion, indicating an improvement for Turkey.
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