Fitch: Turkey outlook positive

Fitch Ratings said it revised the outlook on the Republic of Turkey's long-term foreign- and local-currency issuer default ratings to positive from stable and affirmed them at BB+.

The agency has also affirmed Turkey's short-term foreign-currency issuer default rating at B and the country ceiling at BBB-.

"The revision in Turkey's Outlook reflects its strong economic recovery, improving public finances and increasing confidence that a lasting transformation in the country's economic prospects and stability is underway," Ed Parker, head of emerging Europe in Fitch, said in a statement.

"Nevertheless, there is some uncertainty whether Turkey can grow robustly without generating significant imbalances that pose a threat to macroeconomic stability."

Turkey's ratings are underpinned by GDP per capita that is above the BBB range median, a strong banking system, a floating exchange rate regime and a favorable business climate and governance relative to peers, the agency said.

Political risks weigh on the ratings, according to the agency.

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