Turkey plans to establish its own credit ratings agency this year, BloombergHT reported citing banking officials.
Banks have been studying the best practices of international ratings agencies as they prepare Turkey’s own ratings system, said Huseyin Aydin, head of the Banks Association of Turkey, according to the news channel.
A national credit ratings agency will be set up during 2018 and will help Turkish banks better assess the risk of loans in Turkish lira, which are over-estimated by current methods, said Mehmet Ali Akben, head of the country’s banking regulator, the BDDK.
Turkish President Recep Tayyip Erdoğan said last week that international credit ratings agencies were working against Turkey to produce subjective reports on the country’s economy. He spoke after a decision by Moody’s to downgrade Turkish debt to Ba2, two levels below investment grade. Moody’s cited Erdoğan’s excessive power over decision-making as a reason for the downgrade.