Fitch Ratings said on Tuesday Türkiye's economy has remained resilient despite heightened geopolitical uncertainty, with sustained improvements in international reserves remaining a key factor for any future sovereign credit rating upgrade.
The comments from Erich Arispe Morales, senior director at Fitch Ratings, came after the agency last Friday affirmed Türkiye's long-term foreign currency sovereign rating at "BB-" with a stable outlook.
Morales said Fitch's latest assessment was consistent with an unscheduled review published in April amid the U.S.-Israeli war on Iran, which prompted the agency to reassess risks facing the Turkish economy.
Supply shocks mainly due to the fallout from the Iran war had pushed Türkiye's headline inflation higher in April and May, but June signaled the return of a downward trend.
While Türkiye's international reserves declined during the conflict, they have since partially recovered, though they remain below pre-war levels.
