Credit rating agency Fitch revised Turkey’s outlook to “stable” from “positive”, citing a sharp erosion in foreign exchange reserves due to heavy intervention to support the lira and rising risks from the Iran conflict, Reuters reports.
It, however, affirmed Turkey’s long-term foreign-currency rating at “BB-“.
The agency flagged persistent macroeconomic vulnerabilities, including high inflation, large external financing needs and weak reserve buffers despite earlier improvements.
It added that Turkey’s external debt remained high relative to its reserves.