Turkey has received its second credit rating upgrade in six months from Fitch Ratings, reflecting improved external buffers and a surge in reserves. The nation’s rating was raised to BB- from B+, just three levels below investment grade, with a stable outlook. This upgrade puts Turkey on par with countries like South Africa, Armenia, and Jordan. Fitch noted Turkey's strengthened reserve composition, with its central bank's net foreign exchange position improving from a negative $75 billion in April to a positive $6 billion by the end of August.

The boost follows a significant de-dollarization trend among residents and a rise in capital inflows, driven by increased confidence in Turkey's economic policies. However, Fitch cautioned that Turkey still faces elevated vulnerability to default if adverse economic conditions arise. While Fitch expressed confidence in the nation’s current economic program, it warned of potential risks, including political resistance to high interest rates.