Following international credit rating agency Moody's, Fitch Ratings also made a positive move regarding Türkiye's credit rating. Fitch Ratings confirmed Türkiye's credit rating as "B" and raised the rating outlook from "negative" to "stable" after 2 years, Erich Arispe Morales, Senior Director of Fitch Ratings said.
"We think that economic growth will be around 4.3 percent this year. Next year, if policy coherence, a tight fiscal credit environment, and high-interest rates remain on the table, we think the economy could grow by around 3 percent. In 2025, economic growth should pick up again to 3.4 percent," Morales said.
In addition, Morales said that the improved policy had reduced pressure on reserves.
"We have observed that politics is now turning in a more conventional direction," he added.
Morales emphasized that Türkiye is in a sensitive position due to its high financing needs and foreign exchange reserve level.
"In this context, we think that going forward we need to be more confident that this policy direction will be maintained and will lead to some reduction in the risk to macroeconomic stability. An example of this is disinflation," he emphasized.
Fitch Ratings Senior Director reminded that Türkiye was at the current rating level in 2003 and was upgraded to "investment grade" in 2012.
"For developing countries, this (upgrading the rating to investment grade) requires a long-term endeavor. It is also about recalibrating and refining these policies over a longer period of time. This not only gives us confidence but also increases economic flexibility and predictability for policymakers," Morales highlighted.
Source: Anadolu Agency