WASHINGTON 

Fitch Ratings upgraded its outlook Friday on Türkiye’s long-term foreign-currency issuer default rating to positive from stable, while affirming the rating at “BB-.”

The international credit rating agency said its decision reflects “a further reduction in external vulnerabilities,” driven by faster-than-expected foreign exchange reserve growth, improved reserve quality, a decline in foreign-currency contingent liabilities and continued relatively tight macroeconomic policies.

It noted that gross foreign exchange reserves had risen to $205 billion in mid-January from $155 billion at the end of 2024, while net reserves, excluding swaps, recovered to $78 billion from minus $66 billion in March 2024.

Fitch also pointed to an improving external financing position, projecting external liquidity to rise to near 100% in 2027 from 80% at end-2024, supported by the country’s track record of sustaining access to external financing and a resilient banking sector.

The ratings agency said Türkiye’s large and diversified economy and low government debt continue to support the rating.