Turkish financial sector acquires majority stake in JCR Eurasia to create national rating firm

10 December 2019 —
Turkey's banks and financial institutions bought 85.05% of JCR Eurasia, the local unit of Japan Credit Rating Agency, Turkey's banking association announced last Friday, sealing the Turkey's longtime goal to create a national firm that will appraise the creditworthiness of businesses seeking to borrow, informed REUTERS.

Thus, Borsa Istanbul will hold 18.5% of the company, the Financial Institutions Association, Turkey's Capital Markets Association and the Insurance and Reinsurance Union will each hold 6% of the company, while other 17 state-owned and private banking institutions will each own 2.86% stakes. Japan Credit Rating Agency will keep the remaining 14.95%.

"Turkish politicians have long complained about what they perceive as unfair treatment by global rating firms Moody's, Fitch Ratings and S&P Global, all of which rate the country junk", wrote CPI Financial.

"Turkey is buying a credit-ratings firm that will assess the nation's companies, a move that may support the government's efforts to spur more bank lending", according to local newswire ANADOLU Agency.