Fitch raises Turkey to investment grade

International credit rating agency Fitch on Monday raised Turkey to investment grade BBB-, Anatolia news agency reports. The outlook on the rating was stable while the country ceiling was upgraded from BBB- to BBB. Fitch said Turkey's sovereign creditworthiness had become more resilient to shocks and that the upgrade reflected "a combination of an easing in near-term macro-financial risks as the economy heads for a soft landing," as well as "a moderate and declining government debt burden, a sound banking system, favourable medium-term growth prospects and a relatively wealthy and diverse economy." "Fitch believes that the Turkish economy is on track to return to a sustainable growth rate, having narrowed the current account deficit and lowered inflation after overheating in 2011," it said. Fitch estimated that Turkey's economy would grow 3% in 2012, 3.8% in 3.8% and 4.5% in 2014. The agency said "the country's strong sovereign, bank and household balance sheets, and economic and exchange rate flexibility provide important buffers against shocks spreading into a wider financial crisis."