Fitch increases Turkey's credit rating

Fitch increases Turkey’s credit rating

International credit rating agency Fitch announced that it has increased Turkey's long-term foreign and local currency ratings from B to B plus. At the same time, Fitch affirmed Turkey's short-term rating as B. Furthermore, Turkey's long-term ratings outlook remained stable. According to a statement released by Fitch, the rate upgrade reflects progress towards sustaining macroeconomic stabilization. It is also reported that this was supported by particularly by the decline in inflation and interest rates as well as exchange rate stability and on going fiscal consolidation and economic reform under the IMF program. Fitch also stated that Turkey's fiscal financing outlook for 2004 is relatively good, however if a series of major shocks will occur, the government will encounter difficulties in meeting its debt servicing obligations this year. In addition, another credit rating agency Standard & Poor's (S&P) has increased Turkey's credit rating to B plus in October 2003.