Turkey’s first 'indigenous and national' credit rating agency
Turkey bought 85.05% of Japan Credit Rating Agency (JCR) Avrasya. How did a seemingly Japanese company became a national asset?
Turkey finally has a national credit rating agency that it has been dreaming of for years. Borsa Istanbul and other Turkish finance institutions bought 85.05% of Japan Credit Rating Agency (JCR) Avrasya.
President Recep Tayyip Erdogan has frequently lashed out at the low grades Moody's and S&P have assigned to Turkey. In 2012, Erdogan first talked about creating an “indigenous and national” credit rating agency.
As Turkey’s credit rating was downgraded in the following years, establishing a national credit company or buying an existing one has become a priority. And on Nov. 29, Turkey accomplished its dreams and bought JCR Avrasya.
Considering it has been bought as an alternative to Moody’s, S&P and Fitch, the investment may seem like a bad idea. Many believe that unlike these “low graders," the Turkish agency would be generous with the ratings. This expectation was clearly articulated in government-controlled media. The headline of pro-government newspaper Hurriyet read: “National step against the low graders.” One of the few critical newspapers, BirGun, meanwhile, put the expectation more clearly: “First step toward the desired ratings.”
