ISTANBUL

Fitch Ratings said Friday it upgraded Türkiye's long-term foreign currency issuer default rating to BB- from B+ with a stable outlook.

The rating agency said the upgrade reflects improved external buffers, reduced contingent foreign exchange liabilities, the expectation of lower inflation and lower current account deficits.

Inflation in Türkiye is expected to finish the year at 43%, resulting in average inflation of 59.5% for 2024, according to Fitch.

The agency forecast inflation to average 31% next year and 21% by the end of 2025.

"Given the still high projected level of inflation, the premature easing of monetary policy or the abandonment of the current policy direction, which is not our base case, could reignite inflationary pressures and consequently macro-financial stability and balance of payments risks," it said in a statement.