Turkey Rated Stable

The US-based credit rating agency Fitch Ratings on Friday affirmed Turkey’s credit rating at ‘BB+’ and said that its economic outlook remained stable. The country’s credit rating is a balance of “high external financing vulnerabilities” with “a long commitment to fiscal stability and strong growth performance,” the ratings agency said in a statement, Anadolu Agency reported. While Turkey’s structural indicators are “generally superior” to peer countries, its current account deficit is larger. “Higher commodity prices have caused a renewed widening of the deficit,” Fitch said, adding that “external vulnerabilities are a key credit weakness.” But Turkey’s economy rebounded strongly in the first quarter, posting 5% growth year-on-year, Fitch said, emphasizing economic growth is expected to remain above average compared with peer countries. “Turkey is a large and diversified economy with a vibrant private sector,” Fitch said. “A potentially smoother political environment, early signs of a recovery in the tourism sector and a stronger external environment should support solid performance over the forecast period,” it added. Fitch forecasts Turkey’s growth to average 4.35% between 2017 and 2019.