JCR EURASIA RATING

JCR-ER is a rating agency authorized to carry out activities in capital markets and under the

Basel Regulations and has international activities.

Company Credentials

Company JCR Eurasia Rating (JCR-ER)

Nationality Turkey

Operating

countries

Turkey, TRNC, Ukraine, Albania and

Kosovo

Speaker

Establishment

date February 22, 2007

Profile of CRA

JCR-ER was founded in Istanbul, Turkey in 2007.

The same year, it signed the partnership agreement with Japan Credit Rating Agency, Ltd. (JCR).

Profile of CRA

JCR-ER has rating licenses issued by three public institutions (CMB, BRSA and Turkish Treasury) in Turkey. JCR-ER;

Has received the rating licenses related to credit rating in the fields of capital market and corporate governance from CMB-Capital Market Board

Has been authorized as ECAI-External Credit Assessment Institution within scope of Basel regulations by the BRSA-Banking Regulation and Supervision Agency.

Has been included in the list of the authorized rating institutions by the Turkish Treasury Regarding the Measurement and Evaluation of Capital Adequacy of Retirement Reinsurance and Pension Companies.

Profile of CRA

Currently, the only rating institution authorized as the ECAI in Turkey is JCR-ER.

Profile of CRA

JCR-ER is the member of both

EACRA (European Association of Credit Rating Agencies) and also

ACRAA-The Association of Credit Rating Agencies in Asia.

Profile of CRA

The leading banks,

Other financial institutions,

Insurance companies,

Public institutions,

Industrial and commercial companies,

SMEs, local authorities,

Bonds and structured finance issuance and

Projects

are to form the customer or rating base of JCR-ER

Profile of CRA

Currently; JCR-ER has more than 160 customers in credit rating, issue

rating and structured finance rating fields. In addition it has 10 customers related to corporate

governance rating and 3 countries given sovereign rating. Moreover, JCR-ER has reached more than 10 thousand

companies for scoring.

Profile of CRA

Three Local rating agencies and international rating

institutions, namely, S&P, Moody's and Fitch have been operating in Turkey other than JCR-ER. But currently, the biggest rating agency is JCR-ER.

According to current data, between 75% and 80% of the

total rating market share has been dominated by JCR-ER.

Regulatory requirement of credit ratings in issuing bonds or borrowing from banks

Rating is optional in the capital markets in Turkey. However, as a general

trend of the market, investors give importance to rating reports. That is why issuers are demanding to be rated in Turkey.

In addition, there are regulations made by CMB that encourage to purchase rated debt instruments. These regulations increase the demand for ratings.

In case of companies' demand for credit from banks, requesting rating has been left to the discretion of the banks. However, banks in Turkey have chosen to use their internal rating systems not those of ECAIs.

Other noteworthy regulatory use of credit ratings

Although unsolicited ratings are legally possible in Turkey, based

on the principle and ethical reasons, JCR-ER does not assign unsolicited ratings.

Rating is compulsory for public issues of ABS, RMBS and CMBS.

Annual review of ratings is compulsory for already issued and rated debt instruments.

Thank You