UPDATE 1-Turkish assets turn positive on global cbank move

(Updates lira, stocks)

ISTANBUL, Dec 12 (Reuters) - Turkish assets turned positive on Wednesday after the Federal Reserve and key central banks unveiled coordinated action to boost liquidity, while investors looked ahead to an expected Turkish rate cut on Thursday.

The lira <IYIX=> had closed on the interbank market at 1.1720, weaker than Tuesday's close of 1.1685. But after the Fed announced a plan to ease short-term funding pressures in coordination with other major central banks, the lira firmed in after-hours trade to 1.1650 as markets rallied globally.

At 1530 GMT, the lira stood at 1.1675 to the dollar.

Giving a brief boost to Turkish markets earlier in the day was a decision from Fitch Ratings to raise Turkey's local currency rating to 'BB', citing improvement in public finances and the economy.

Fitch left the foreign rating unchanged at 'BB-', but analysts said the local currency move was likely to be the first of a series of upgrades.

"The upgrade is not overly surprising, but on the other hand there is no doubt that it is good news for the Turkish markets ... (which) have rallied on the back of the news," Lars Christensen, economist at Danske Bank, said in a note.

He also said it increased the chances the central bank would cut rates by 50 basis points at its monetary policy committee meeting on Thursday, although he was still looking for a 25 basis point cut.

A Reuters poll of 17 institutions showed 11 forecast a 50 basis point cut and six expected a 25 basis point easing. The benchmark borrowing rate is the highest in mainstream emerging markets, at 16.25 percent.