Fitch cuts Turkey to stable

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

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

The outlook revision reflects an increase in near-term risks to macroeconomic stability as Turkey faces the challenge of reducing its large current account deficit and above-target inflation rate against the background of deterioration in the global economic and financing environment, Fitch said.

Nonetheless, the ratings are supported by favorable government debt dynamics, a healthy potential growth rate and a strong banking sector, the agency said.

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