Turkey plans to establish ‘national credit rating agency’ in 2018: Watchdog

ISTANBUL

Turkey plans to set up a “national credit rating agency” this year, the head of the country’s banking watchdog has stated.

Banking Regulation and Supervision Agency President Mehmet Ali Akben said works are currently underway to clarify the organizational structure of the agency.

“We want to achieve progress in this area this year. We plan to establish Turkey’s national credit rating agency in 2018,” Akben told reporters in Istanbul on March 12, as quoted by state-run Anadolu Agency.

“Banks may establish this agency together or a private company may do it ... A partnership among banks may clinch this deal on the condition that none of the banks take a share over 10 percent,” he added.

Akben suggested that the establishment of this agency would “positively affect the debt costs of Turkey’s lenders.”

“What is important here is to set up a structure that knows the Turkish system and companies,” he added.

The move comes amid upset in the government over a series of downgrades of Turkey’s sovereign debt by international rating agencies. Most recently, Moody’s downgraded Turkey’s sovereign ratings to Ba2 from Ba1, citing a continued loss of institutional strength and the increased risk of an external shock given its wide current account deficit.