Oliver Everling (publisher): Municipal rating: Securing financing of cities and communities, 2nd edition Cologne 2015, Bank-Verlag, http://www.bank-verlag.de/, 414 pages, Art. 22.489-1500, ISBN 978-3-86556-445-0.

The number of municipalities under emergency budget law raises the question of when banks could also be affected by defaults at municipal loans. Due to the minimum requirements for risk management, credit institutions are required to make risk classifications for each borrower, including municipalities and the companies they support. The political decision to weight the risk of public debtors with “zero” for the purpose of owning capital of credit institutions does not make a municipal rating superfluous, even for economic reasons.

For the first time in Germany, the first edition of the book “Kommunalrating” dealt with the topic of municipal finances from the perspective of the rating. The book sparked a lively discussion that sought less theoretical modeling than practical solutions. In the second edition, new proposals are raised, especially from the perspective of those affected, the mayors and city treasurers, but also by scientists. Many municipalities gained experience with the status of their over-indebtedness. In the case of insolvency, there is still no municipal bankruptcy law, which would allow in a foreseeable process, the exemption from the burden of debt. The lack of legal title to enforce their claims in the event of payment difficulties with their municipal debtors forces banks such also every other creditor for the differentiated risk classification of the municipal rating. The new book not only pools assessment standards for the rating of municipalities, but also highlights current developments.

Oliver Everling (Herausgeber): Kommunalrating: Finanzierung von Städten und Gemeinden sichern, 2. Auflage Köln 2015, Bank-Verlag, http://www.bank-verlag.de/, 414 Seiten, Art.-Nr. 22.489-1500, ISBN 978-3-86556-445-0.