Fitch confirms Turkey's credit rating at 'BB-', outlook stable

ANKARA-Anadolu Agency

Fitch Ratings affirmed Turkey's credit rating at 'BB-' on Aug. 13 with a stable outlook. 

"Turkey's ratings reflect weak monetary policy credibility, high inflation, low external liquidity in the context of high financing requirements and geopolitical risks," the global rating agency said in a statement.

Fitch said it expects inflation to ease to 16.9 percent by the end of the year due to a favorable base effect and slowing domestic demand.

The agency revised up Turkey's 2021 growth forecast to 7.9 percent, from its previous estimate of 6.3 percent in June, because of strong performance in the first quarter and continued resilience in economic activity.

It also expects the full-year current account deficit to decline to 3 percent of the gross domestic product in 2021, from 5.2 percent in 2020, as tourism export receipts improve year-on-year in second half of the year.

Fitch revised Turkey's outlook to stable, from negative on Feb. 19.