Turkish Rating Report

Corporate Governance Assessment using Capital Markets Board Principles

As Turkey moves to become part of the European Union and due to the importance of a well functioning capital market for the country's economy, the Capital Markets Board (CMB) of Turkey has introduced several measures to strengthen its capital market and align its practices with International standards.  In addition, the CMB recognizes that companies with strong corporate governance practices will appear more attractive to both Turkish and foreign investors. 

To help drive adoption of good corporate governance practices in Turkey, the CMB has defined corporate governance principles covering four main areas: rights of shareholders, public disclosure and transparency, stakeholders, and board structure and activities. 

The CMB is encouraging companies listed on the Istanbul Stock Exchange (ISE) to obtain a rating of their corporate governance practices by a registered ratings provider by the end of 2007.  To highlight those companies that achieve good governance ratings, the CMB is planning a Corporate Governance Index on the ISE, as well as discounts on annual listing fees. 

Turkish Rating Report

Risk Metrics Group, through its acquisition of ISS, has been a registered corporate governance ratings provider in Turkey since April 2004.  Based on the guidelines defined by the CMB and our long experience in corporate governance ratings, we have developed a detailed ratings system to evaluate Turkish companies' corporate governance practices and adherence to the CMB principles.

The Turkish Rating Report provides an independent assessment of your company's corporate governance standards, and measures your adherence to the principles defined by the CMB.  In addition, the Rating Report can help you:

• Demonstrate due diligence and care
• Prioritize risk management activities internally
• Explain where your company's governance structures and practices may diverge from nationally or internationally defined best practice
• Determine the changes your company can make to achieve best practice
• Prepare for potential engagement on governance issues with investors and stakeholders

To produce the Rating Report, the corporate solutions team will analyze your corporate governance practices, using publicly available information, such as annual reports, AGM agendas, AGM minutes, and articles of association.  As necessary, conference call interviews with board members or senior management staff may also be conducted.

In accordance with our Business Practices, this solution is delivered by ISS Corporate Services, Inc. (ICS), a wholly owned subsidiary of RiskMetrics Group, Inc.