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S&P Global’s New Strategic Direction and Growth Targets
S&P Global unveiled today its new strategic direction and growth targets at its 2022 Investor Day in New York. The event is the first Investor Day for the combined Company, following the completion of S&P Global’s merger with IHS Markit earlier this year, and the first for the Company in four years. The Company will […]
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Full Year 2022 Diluted EPS Guidance Range – Adjusted
Moody’s Corporation today announced results for the third quarter of 2022 and updated its outlook for full year 2022. It happened as it had to: While the low interest rate policy resulted in a firework display of bond issues up to the end of 2021, the reluctance of issuers is now becoming noticeable. Inflation with […]
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Moral Rating Agency About Russia
A company that wields greater economic Power over Russia has a greater responsibility to take action. Or, put another way, if such a company doesn’t withdraw, it is supporting Russia more than a company with less Power. This is the verdict of a rating agency specializing in these questions.
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Now the Ball is in the Hands of the Credit Rating Agencies
The capital increase and the purchase of the shares by the Federal Government of the Federal Republic of Germany stabilize the company and make it appear less likely that it will run into difficulties. The credit rating agencies must therefore check whether the outlook must remain negative or whether it can even be turned positive. […]
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Local Supply Real Estate in Great Demand – But How to Invest?
A Berlin rating agency is dealing with the far-reaching change in the use of retail real estate: “The local supply sector is one of the winners. Investors appreciate its independence from economic cycles. There are still challenges – sustainability is one of them,” says the research of the Scope Fund Analysis. Scope sees the reason […]
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Birth of the Morningstar Medalist Rating
Morningstar to Unite Two Forward-Looking Rating Systems into One.
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New funds, new top ratings
An impressive 135 portfolios were rated for the first time by the Berlin rating agency Scope, 40 percent of which received a top rating straight away. The rating agency’s analysts were also impressed by many funds with a longer rating history, such as a bond heavyweight from Pimco and an infrastructure stock fund from DWS. […]
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A “Security” That Loses 20% in a Single Day
Around 20% fall in the stock market in a single day – that’s the report for Samhallsbyggnadsbolaget I Norden AB Class B shares today, Thursday, July 14, 2022. Stocks with such loss potential can hardly promise the security to warrant an investment grade rating for the investment company holding those stocks. “Scope affirm’s Ilija Batljan […]
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Incline Downwards
It came as it had to come – there is news about this rating, reported today: The credit rating agency S&P Global Ratings today announced that they are confirming Samhällsbyggnadsbolaget i Norden AB (publ)’s investment grade rating BBB- and outlook has been updated to negative from stable. SBB has BBB-rating with positive outlook from Fitch […]
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Scope Relies on Political Intervention
“Uniper withdraws its 2022 financial outlook amid Russian gas supply restrictions” – That’s the title of an action-free press release from a Berlin rating agency, called Scope Ratings, today: “This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the […]
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What is the balance sheet about?
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, fights for the reputation of his group. RATING EVIDENCE has had several occasions to report on this entrepreneur and his company on this and another website, rating.repair and everling.de. RATING©REPAIR is the name of the virtual repair shop as a B2B service, a brand name […]
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Formerly BB, Now Under Supervisor’s Scrutiny
“Because the bonds purchased by the Adler Group no longer meet the requirements of the ECB, the central bank has now thrown them out of its portfolio in a move that caused a stir”, that is what the Börsen-Zeitung writes today. Only rating reports from S&P Global Ratings are available on the Adler website, the […]
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Main Holders of Digital Assets
Assessing digital assets will be a challenge for the ratings industry. More and more institutional investors will count digital assets among their investments.
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Unfair, Camouflaged Advertising
It is a judgment with relevance for the rating industry, namely the judgment of the Frankfurt am Main Higher Regional Court on unfair camouflaged advertising when considering paid product reviews within the overall rating result of a product. If the overall evaluation result for products offered on a sales platform also includes reviews for which […]
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New Senior Secured Corporate Bond and Redemption of Existing Bond
The processes require detailed examination by the credit rating agencies. Here it must be clarified whether the transaction will result in an upgrade or a downgrade, or whether it will have no impact on credit ratings.
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Anyone Not Issuing Bonds Now is Hoping for Better Times
S&P Global share price collapsed today. The background to this is the company’s outlook, which has already been significantly corrected after just one month. What reads like bad news also contains a hidden positive signal.
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It Happened the Way it Had To
The news is not entirely unexpected, as this company became a case for RATING©REPAIR some time ago (see here). Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is now taking measures to prevent the credit rating from slipping after all. Now the company is selling two properties in Norrtälje for an agreed property value of approximately SEK […]
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Fund Managers’ Greatest Difficulty in Accessing High Quality Data
Fund managers’ difficulties in obtaining reliable data for fixed income investments offers plenty of scope for even more services from the leading credit rating agencies. New research with fund managers in North America who collectively manage around $600 billion, reveals they are placing a growing emphasis on both the quality of the data used in […]
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Arguments for a More Stable Outlook
GRENKE AG, a global financing partner for small and medium-sized enterprises, generated net profit of EUR 20.5 million in the first quarter of 2022 (Q1 2021: EUR 14.0 million), corresponding to an increase of 46.8% compared to the first quarter of 2021. However, it is questionable whether this and the company’s results presented below are […]
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To Say Goodbye to Russia, There Is Still an AAA
A Russian rating agency is avoiding the issue of banks withdrawing from Russia. The Russian Analytical Credit Rating Agency ACRA affirms the AAA(RU) credit rating to SEB BANK JSC with a stable outlook: “The credit rating of SEB Bank JSC is based on the very high likelihood of extraordinary support from the parent company. SEB […]
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Securitization Rating Agency of the Year
The embarrassment for European credit rating agencies is certain even before the voting has started. “US Securitzation Awards 2022 – voting now live!” This is the call from GlobalCapital, inviting market participants to vote for the best rating agency when it comes to securitization. This is the choice:
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New Political and Economic Burdens Ignored
Scope affirms Ilija Batljan Invest AB’s issuer rating at BBB-/Stable. This news must come as a surprise given the current economic and political challenges that have meanwhile added to the factors that already made an “investment grade” rating seem questionable last year.
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S&P Global Ratings and Moody’s Investors Service Both Are Feeling the Lack of Issuance Activity
S&P Global Ratings reported a revenue decrease of 15% to $868 million in the first quarter of 2022. Transaction revenue decreased 31% to $404 million. Transaction revenue was negatively impacted by a year-over-year decrease in debt issuance across all categories, but particularly within high-yield, which decreased approximately 68% year-over-year. Non-transaction revenue increased 7% to $464 […]
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Never Trust Google for Credit Ratings
At first glance, it all seems like a nasty publicity ploy to lure unsuspecting savers to the website of an investment broker who wants to broker savings at risky banks. However, a closer look reveals that the provider in question does everything possible to provide correct information about the credit ratings issued by recognized credit […]
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Top Credit Ratings from Google’s Search World
Four US rating agencies give Triple-A credit ratings to a bankrupt bank? On Friday 22 April 2022, the Amsterdam District Court, at the request of Amsterdam Trade Bank N.V. (ATB) and after hearing the Nederlandsche Bank N.V., declared ATB bankrupt. Declaring the bankruptcy means that a trustee has been appointed to wind up the Trade […]
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Sell Pressure at S&P Global Delights DBRS Morningstar
DBRS Morningstar will benefit from LCD data and news, supporting credit analysts and credit investor workflows. S&P Global Market Intelligence’s Leveraged Commentary & Data (LCD) combines real-time news, data, tools, and analysis on the U.S. and European leveraged loan, high-yield bond, distressed, and investment-grade corporate markets. Produced by S&P Global’s own team of experienced journalists […]
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Changing Lifestyles Force New Rating Criteria
The pandemic is leaving its mark on rating systems from different perspectives. Working families swap the city for country living: Changing work habits brought about by the Covid-19 pandemic and rising house prices have seen households turn their back on cities for nearby countryside locations. There are changes in real estate markets, but also in […]
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Where Is the Opinion of the Rating Agency
Moody’s credit ratings for MAHLE GmbH is just below investment grade, Ba1 (LT Corporate Family Ratings, since April 7, 2021). The credit rating is not on Watch, the outlook stable. Recent news could cause this situation to change. MAHLE and Matthias Arleth (54), Chairman of the Management Board and CEO, have decided to terminate their […]
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Exploring the DeFi Ecosystem
Decentralized Finance (DeFi) presents limited risks to the mainstream financial system as, barring stablecoins, it is largely separate and not yet systemic in size. Nevertheless, alongside market and liquidity risks, fraud is a significant risk with DeFi transactions. While a smaller rating agency is hardly able to slow down enthusiastic investors, but – on the […]
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A Not So New New Rating From Moody’s
Moody’s Investors Service is seeking feedback by May 05, 2022 from market participants on proposed changes to its Banks Methodology. The key proposed revision is to introduce new ratings that exclude government support (XG ratings) in Moody’s methodology for banks. The rating agency is currently collecting comments and opinions from market participants. Hence a remark […]
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Seal of Creditworthiness in a Changed Market Environment
Scope Ratings GmbH (Scope) has assigned a first-time issuer rating of BB/Stable to Luxembourg registered real estate developer MG RE Invest S.A. Scope has also assigned a first-time rating of BB to the company’s senior unsecured debt. It is a bold credit rating at a time when a whole range of general conditions for the […]
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Sanctions Against Russia Not Thought Through to the End
The exuberant regulation of the credit rating agencies is always sprouting new flowers. The instrumentalization of rating agencies for political goals is being discussed at the United Nations, although right now it is becoming clear what negative effects it has when rating agencies are used for political sanctions. At the “High Level Meeting on the […]
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A New Move in the Rating Shopping Spree
Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) attracted attention due to the rating shopping spree of its main shareholder.
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Morningstar Takes on the Regulation
Looking forward to 2022, Morningstar, Inc.’s Joe Mansueto, Executive Chairman and Chairman of the Board, and Kunal Kapoor, Chief Executive Officer, expect the Board to support Morningstar’s strategic initiatives including an initiative they call “Organizational Design Responsive to Changes in our Regulatory Landscape”.
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Investment Guidelines of German Municipalities in Practice
US rating agencies remain at an advantage over their European competitors. As the practical example of regulation in Hesse shows, the investment guidelines for municipalities cement the dominant position of the US rating agencies for every rated investment. Even the German rating agencies are out of the question for most communities. Since the ratings of […]
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Information from the Hessian Ministry of the Interior on Investments and Deposit Protection in a New Light
Part 2 Funds available according to the provision listed in “Information from the Hessian Ministry of the Interior on investments and deposit protection” of May 29, 2018 can be invested in shares in investment funds within the meaning of the Investment Modernization Act (Investmentmodernisierungsgesetz). The aforementioned requirements have already been reported here in Part 1. […]
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Information from the Hessian Ministry of the Interior on Investments and Deposit Protection in a New Light
On May 29, 2018, the Hessian Ministry of the Interior informed on investments and deposit protection in the State of Hesse, Germany. In the wake of the Greensill scandal, this legal framework is being given new life in many communities. The following article will therefore first explain the legal framework created in 2018 before examples […]
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US Hedge Funds – US Credit Rating Agencies
A quant technology provider, SigTech, has analysed data on the global hedge fund industry and identified key trends around growth, new launches and investment strategies. According to their findings and couting 27,255 active hedge funds globally, 67% of all hedge funds globally and 70% of all new fund launches are US-based Crypto hedge funds appear […]
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Role of Credit Rating Agencies in Implementing Sanctions
ESMA Chair, Verena Ross, takes a look at the rating market structure today, and sees that there are 24 CRAs in the EU registered with ESMA, located in 13 different Member States. She delivered a keynote speech at the European Association of Corporate Treasurers (EACT) Summit. Verena Ross spoke, among other things, about Credit Rating […]
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A Geo-Economic Turning Point
“Looking at the big picture, the capital markets are facing a real turning point – towards looming resource scarcity and increased inflationary pressure. The current corrections are therefore not a brief blip, but the beginning of a tectonic market shakeout,” said Dr. Heinz-Werner Rapp, board member and chief investment officer of FERI, at the digital […]
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Sweden’s Foremost Entrepreneur
A Swedish entrepreneur strives for glamor and distinction. The case of the entrepreneur Ilija Batljan showed what special features can appear.
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Switch Off Moody’s German Website
In 1991 Moody’s presented itself in full-page advertisements as the first German credit rating agency. Moody’s Investors Service now achieves an average operating margin of over 60% worldwide. However, after three decades, the German-language website of this leading international agency is still in a deplorable state. After so many years, Moody’s German website still does […]
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Russia’s Credit Rating Hinges on Tougher Sanctions
Possible sanctions attract the attention of credit analysts. Russia’s credit outlook could be adversely affected by specific Western sanctions, in the event of a failure to defuse the crisis over Ukraine, says Levon Kameryan, Senior Analyst, Sovereign and Public Sector Ratings, and looks at the cumulative impact of existing and potentially stronger future sanctions, a […]
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Moody’s Sets the Standard for Africa
When people in Africa spoke of an independent credit rating agency – independent of the three leading US rating giants – they were talking about “Global Credit Rating” from South Africa, which had made a name for itself on the entire African continent. GCR is a leading credit rating agency in Africa with offices across […]
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Les Agences de Notation – The Credit Rating Agencies
Rating agencies have been the subject of a number of controversies since the late 1990s, writes Norbert Gaillard in his latest book “Les agences de notation“, published in Éditions La Decouverte, Paris 2022. The Asian crisis of 1997/98, the Enron scandal of 2001 , the debacle on the subprime market in 2007/2008 and the sovereign […]
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Disclosure Requirements for Initial Reviews and Preliminary Credit Ratings Discussed
The European Securities and Markets Authority (ESMA) published its “Final Report” with “Guidelines on Disclosure Requirements for Initial Reviews and Preliminary Ratings“. The purpose of these Guidelines is to deliver guidance that will address inconsistencies in the application of these requirements by Credit Rating Agencies (CRAs), and by extension reduce the risks that are posed […]
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Gender Equality as a Competitive Advantage
The Bloomberg Gender-Equality Index (GEI) is including Moody’s Corporation for the third year in a row. Moody’s was recognized this year again for ongoing leadership in promoting gender equality among its peer companies in the global business community. The rating agency is not just following a fashion trend here. Since questions about gender equality play […]
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Economic Emergency Braking in the USA and Surprising Recovery in Germany
At the beginning of January, the US economy was still the world’s economic engine, while Germany – after negative growth in the fourth quarter – was heading for a very weak first quarter. “However,” says Carsten Mumm, Chief Economist at Privatbank DONNER & REUSCHEL, “the current flash estimates of the Markit purchasing managers’ indices paint […]
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DEXTRO’s New Risk Class Methodology
A new risk class methodology with seven risk classes (RK1 to RK7 similar to MiFiD II or SRRI) and at the same time emancipation from the dogma of “historical volatility” should determine the risk ratings of the DEXTRO Group in the future, which will continue to be based on the pillars of forecast risk / […]
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Liability of Credit Rating Agencies for Issue Ratings
A new article discusses a dissenting verdict on the rating of a cruise ship bond. The numerous decisions of the Berlin courts have brought the issue of the liability of rating agencies back into focus, writes lawyer Dr. Sunny Kapoor, Frankfurt a. M., in his article “Haftung von Ratingagenturen für Emissionsratings” (WM 2021 Heft 50-52, […]
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US Agencies’ Market Shares Remain a European Debacle
The excessive regulation of rating agencies in the European Union (EU) has failed to achieve its goal. The dominance of US rating agencies remains. Their ratings are practically the only decisive factor for the allocation of the economic resource “capital” in Europe. The three leading US agencies S&P Global Ratings Europe, Moody’s Investors Service and […]
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Parthenon Capital Partners Bets on KBRA
KBRA, a full-service global rating agency committed to innovation and integrity, announced today it has entered a deal with leading growth-oriented private equity firm Parthenon Capital Partners who will acquire a majority stake in the company. KBRA is a global credit rating agency founded in the wake of the global financial crisis. “When KBRA was […]
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Third Bond from Photon Energy N.V.
The third bond from Photon Energy N.V., a family-run, listed Dutch developer and operator of solar power plants for its own electricity production and for third parties, is new to the URA observation. “In addition,” adds Jens Höhl, Managing Director of URA Research GmbH, “there have recently been activities such as electricity storage and water […]
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New On-Chain NFT Art Platform
A leading online art marketplace, art market data and analytics provider, and global newswire, announced “ArtNFT”: this is Artnet AG’s launch of its on-chain NFT platform, its NFT Advisory Board, and ‘Artnet NFT 30’ report. Artnet AG is listed in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest transparency standards. […]
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Scoring And Being Scored
Moody’s Corporation announced today that it has received an ‘A’ score from CDP on climate action for the second consecutive year. The top score recognizes Moody’s as one of a small number of high-performing companies out of nearly 12,000 that are leading actions to cut emissions, mitigate climate risks and develop the low-carbon economy. It […]
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Moody’s Updated Investor Presentation
Moody’s Corporation posted an updated management presentation for investors on its website, ir.moodys.com, reflecting certain information regarding the Moody’s results for the three months ended September 30, 2021, as well as updated full-year 2021 guidance as of October 28, 2021, and its posting is provided pursuant to Regulation FD. Senior management is expected use this […]
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Use of ESG Rating Agencies Will Increase Dramatically
Nearly one in three (30%) pension funds and institutional investors say their use of ESG rating agencies will increase dramatically over the next three years, and a further 38% believe it will increase slightly. This is according to new research from quant technologies provider SigTech, who surveyed institutional investors across North America, Europe and Asia […]
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German Authority Restricting the Number of Bank Customers
The state specification of the number of customers and the limitation of the number of customers who – regardless of market demand – are allowed to use certain services, are typical features of a central administration economy in times of financial repression. On October 5th, 2021, the Federal Financial Supervisory Authority (BaFin) ordered N26 Bank […]
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Assumptions of Implicit Government Support
Why is it not wise to ignore an important dimension of the bank rating, not even for capital adequacy purposes? According to the Basel Framework as it will appear in the future on January 1, 2025, banks incorporated in jurisdictions that allow the use of external ratings for regulatory purposes will assign to their rated […]
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Clear Rating Target Defined
Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”) has entered into a binding agreement to divest eight non-strategic properties with commercial tenants for approximately SEK 400m. This exceeds the latest external valuations (as of 30 September 2021) by 60 percent. “We are selling the properties considerably above our most recent quarterly valuation and will use the proceeds […]
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Micro and Macro Location Rating Tools Managed by New CEO
Heike Gündling will take up the position as the new CEO at the Berlin software house 21st Real Estate on November 1, 2021. Gündling has many years of expertise in the real estate industry and digitization. Most recently she was Managing Director Real Estate at the global data specialist Eucon. She held previous positions as […]
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Moody’s Extends Pole Position with Bogard
Moody’s Corporation has acquired Bogard AB, a leading provider of data and information on politically exposed persons (PEPs) in the Nordic region. The acquisition advances Moody’s ability to help customers perform Know Your Customer (KYC) screening and research to address financial crime. Bogard covers over 17,000 PEPs, relatives, and close associates across Sweden, Norway, Denmark, […]
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Rating Oligopoly Persists
“The EU requirements for providers of credit ratings have not broken the dominance of the three big agencies S&P, Moody’s and Fitch”, says a story published in Germany’s only stock exchange daily, Börsen-Zeitung. in Frankfurt on October 28, 2021. The author, Detlef Fechtner, reports on a speech deliverd by Steffen Kern, Chief Economist and Head […]
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Bureau Veritas Helps to Find More Truth About ESG
Bureau Veritas has an interesting and promising position to support companies on their way to more sustainability. Bureau Veritas helps companies, governments and public authorities reduce their risks in terms of health, quality, safety, environmental protection and social responsibility. Those challenges are central to societal aspirations. Bureau Veritas is a world leader in laboratory testing, […]
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