Fitch Boosts Turkey’s Rating Outlook, Moody’s Stays Put

Fitch Ratings raised Turkey’s outlook to positive from stable on Friday, citing an increase in foreign exchange reserves and reduced risk of policy loosening, days after the central bank delivered a less-than-expected reduction in the benchmark rate.

The firm kept Turkey’s long-term foreign currency rating at BB-, three levels below investment grade. The outlook boost reflects the reduction in external vulnerabilities, including a faster-than-expected rise in reserves and continued tightening of macroeconomic policies, it said after market close on Friday. Turkey last received a credit-rating upgrade from Fitch in 2024.