Fitch ups Turkey's rating

Leading global credit rating agency Fitch has upgraded Turkey's rating to investment grade, a first in Turkish history Today`s Zaman reported.

Fitch had maintained Turkey's rating at "BB+," one notch below investment grade.

The agency said on Monday that "the upgrade to investment grade reflects a combination of an easing in near-term macro-financial risks as the economy heads for a soft landing and underlying credit strengths including a moderate and declining government debt burden, a sound banking system, favourable medium-term growth prospects and a relatively wealthy and diverse economy."

"Fitch believes that the Turkish economy is on track to return to a sustainable growth rate, having narrowed the current account deficit (CAD) and lowered inflation after overheating in 2011. The agency forecasts GDP growth of 3 percent in 2012, 3.8 percent in 2013 and 4.5 percent in 2014. Achieving such a rebalancing without a recession -- helped by a strong trade performance, while unemployment is at an 11-year low -- points to enhanced economic flexibility and resilience," Fitch said on its website.


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