Fitch affirms Turkey's rating at BB+

By Ovunc Kutlu

NEW YORK (AA) - Fitch Ratings on Friday maintained its ‘BB+’ rating for Turkey with a stable outlook.

The country’s credit rating is a balance of "high external financing vulnerabilities" with "a long commitment to fiscal stability and strong growth performance," the ratings agecny said in a statement.

While Turkey's structural indicators are "generally superior" to peer countries, its current account deficit is larger.

"Higher commodity prices have caused a renewed widening of the deficit," Fitch said, adding that "external vulnerabilities are a key credit weakness."

But Turkey's economy rebounded strongly in the first quarter, posting 5 percent growth year-on-year, Firthc said, emphasizing economic growth is expected to remain above average compared with peer countries.

"Turkey is a large and diversified economy with a vibrant private sector," Fitch said. "A potentially smoother political environment, early signs of a recovery in the tourism sector and a stronger external environment should support solid performance over the forecast period," it added.

Fitch forecasts Turkey's growth to average 4.3 percent between 2017 and 2019.