Bloomberg/Kerem Uzel

Economy

Turkey set to launch its own national rating company

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Turkish politicians have long complained about what they perceive as unfair treatment at the hands of Moody’s, Fitch and S&P, all of which rank the country below investment grade.

Thursday 12, September 2019

Turkey is planning to start its own national rating company after years of lashing out at foreign credit assessors, reported Bloomberg.

A group comprised of Turkish banks, the nation’s stock exchange and financial industry associations will jointly establish a firm by acquiring a majority stake in the local unit of Japan Credit Rating Agency (JCR).

The group is in talks to buy more than 80 per cent of JCR Eurasia Rating from shareholders including Orhan Okmen and Rafi Karagol for about $13 million, JCR is expected to retain a stake.

President Recep Tayyip Erdogan has accused foreign credit rating firms of political bias and likened them to circus jugglers.

In April, Treasury & Finance Minister Berat Albayrak said a national credit rating firm would be established this year. In June, the banking regulator’s chief, Mehmet Ali Akben, said the necessary regulatory work was already completed.

“Banks, private institutions and many foreign institutions—provided that there is no conflict of interest and that independence isn’t harmed—may be partners to the firm, says Akben.

TAGS : national rating company , Japan Credit Rating Agency, President Recep Tayyip Erdogan, Treasury & Finance Minister Berat Albayrak

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