Turkey upgraded to investment grade by Fitch

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Turkey upgraded to investment grade by Fitch

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Fitch has upgraded the credit rating of Turkey in a move that Ankara says will boost growth.

The bump up to investment grade – for the first time since 1994 – caused Turkish shares to rise.

It came because Fitch analysts feel there are underlying strengths to Turkey’s relatively wealthy and diverse economy and an easing in near-term risks with moderate and declining government debt and a sound banking system.

Turkey was Europe’s fastest growing last year but slowed sharply this year.

Deputy Prime Minister Ali Babacan welcomed the move, saying the decision was appropriate and overdue, expressing hope that other ratings agencies would follow its lead.

“Turkey’s achievement of this credit rating is expected to mark the start of a new era in the access of our public and private sector institutions to international capital markets,” Babacan said in a statement.