2026.04.1300:54:19UTC+00Fitch Downgrades Turkey’s Outlook to Stable

Fitch Ratings on Friday revised Turkey’s outlook to “stable” from “positive,” citing a sharp depletion of foreign exchange reserves due to extensive interventions to support the lira, as well as mounting risks stemming from the conflict involving Iran. The agency said Turkey has drawn down more than $50 billion in reserves to defend the currency since the onset of the Iran war and now faces heightened vulnerability should the regional conflict be prolonged.

Despite these pressures, Fitch affirmed Turkey’s long-term foreign currency issuer default rating at BB-. The agency highlighted several underlying strengths, including the size of Turkey’s economy, relatively low levels of government debt, and a banking sector it characterized as resilient, even in the face of persistently high inflation.

Among other major agencies, Standard & Poor’s rates Turkey at BB- with a stable outlook. Moody’s assigns a Ba3 rating, also with a stable outlook. DBRS Morningstar’s most recent rating for Turkey is BB (high), accompanied by a negative outlook.