Turkish financial sector buys 85.05% stake in JCR Eurasia

Turkey's leading banking and financial institutions inked a deal to buy 85.05% of credit rating agency JCR Eurasia, Turkey's banking association said on Friday.

Borsa Istanbul will hold 18.5% of the company, while Japan Credit Rating Agency will hold 14.95%. Turkish private and state lenders, including Ziraat Bank, Garanti BBVA, Yapı Kredi will also hold stakes in the company with 2.86%, said a statement by The Banks Association of Turkey (TBB).

The Financial Institutions Association, Turkey's Capital Markets Association and the Insurance and Reinsurance Union will each hold 6% of the company. Rather than rating sovereign debt and banks in Turkey, the agency will continue to evaluate Turkish companies, Reuters said on Friday.

According to the association, the new partnership will determine the credit worthiness of companies wishing to borrow from financial markets, which would help financial resources to be used more efficiently.

The plan could be considered a "tangible step" taken by Turkey in setting up a "national credit rating agency."

For a long time, Turkey has criticized international rating agencies, saying they might be subjective and perform non-transparent evaluations from time to time, resulting in an unfair decrease in confidence in some countries' economies.