Fitch Ratings has revised 11 Turkish corporates’ outlooks on their long-term foreign-currency (FC) issuer default ratings (IDRs) to stable from negative and affirmed the ratings.
The rating actions followed the revision of the outlook on Türkiye’s foreign currency outlook to stable on Sept. 8.
The issuers’ high exposure to the Turkish economy means their foreign-currency IDRs are influenced by the Turkish Country Ceiling, which remains at “B,” said Fitch in a statement.
The revision of the outlook reflects the likely correlation of future rating actions with changes to the sovereign rating, assuming that the country ceiling moves in line with the sovereign IDR, it added.
The companies for which Fitch upgraded their outlook included Arçelik, Aydem, Emlak Konut, Pegasus, OYAK, THY, Şişe Cam, Türk Telekom,Turkcell, Ülker and Rönesans GYO.
Fitch separately announced that it revised Türkiye Wealth Fund’s (TWF) outlook from negative to stable.
Earlier this month, in its September issue of the Global Economic Outlook, the rating company raised its growth forecast for Türkiye from a previous 2.5 percent to 4.3 percent, following stronger-than-expected growth in the second quarter of 2023.
In the April-June period, the country’s economy grew 3.8 percent from a year ago, after expanding 3.9 percent in the first quarter.