Fitch upgrades Turkey’s rating to B+


Fitch, the Rating Agency has upgraded Turkey’s rating from “B” to “B+” – citing tighter approaches to its monetary policy that have helped reduce macroeconomic issues within the country.

Revised outlook from positive to stable

Following the Rating upgrade, Fitch also revised Turkey’s outlook from stable to positive after Turkey’s Central Bank left its key interest rate steady in February.

Commenting on the upgrade, Fitch released a statement saying: “Upgrade reflects increased confidence in the durability and effectiveness of policies implemented since the pivot in June 2023.”

Policy changes after Erdogan’s re-election

Following President Recep Tayyip Erdogan’s re-election in May, Turkey move away from its low interest policy and adopted a more tightened approach by raising its key rate from 8.5% to 45%.

On March 31, local elections are set to take place in the country, after which Turkey is expected to undertake more policy steps to cool inflation according to data from experts and economists.

Fitch Ratings

Fitch Ratings stands as a paramount global credit rating agency, wielding a substantial influence across the financial landscape. By assessing the creditworthiness of entities ranging from sovereign nations to private corporations, Fitch provides invaluable insights that guide investors, lenders, and other stakeholders in making informed financial decisions.

Fitch and Turkey

Fitch Ratings hold a critical role in shaping the economic landscape of Turkey, a country at the crossroads of global finance and regional development.

By providing transparent, objective assessments of Turkey's creditworthiness, Fitch influences not only the country's ability to attract foreign investment but also its cost of borrowing on the international stage. These ratings offer a mirror to the nation's economic health, fiscal policies, and political stability, serving as a crucial benchmark for investors and policymakers alike.

For Turkey, navigating its ambitious economic goals amidst fluctuating global markets, Fitch Ratings act as a vital compass. They not only enhance investor confidence but also support Turkey in its ambitions to strengthen its economic sovereignty, drive sustainable growth, and bolster its position as a pivotal player in the global economy.


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