Investment Guidelines of German Municipalities in Practice

Agencies, Marketing, Regulations

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…

Disclosure Requirements for Initial Reviews and Preliminary Credit Ratings Discussed

Agencies, Authorities, Other, Regulations

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…

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…

Rating Agency Violates Disclosure of Transparency Reports and More

Agencies, Authorities, Compliances, Registrations, Regulations

CRA Transparency Reports 2021 “Transparency Reports” of credit rating agencies (CRAs) are published in accordance with Article 12 and Annex I, Section E.III of the EU Regulation on Credit Rating Agencies: (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended by Regulation (EU)…

No Risk-Free Deposit World in this World


Dr. Tamaz Georgadze comments in the renowned “Börsen-Zeitung” on the “Causa Greensill“ Deposit platforms such as the German “WeltSparen” and “Zinspilot” are among the most important innovations in banking: Customers get more choice and can benefit from higher interest rates from other banks. Deposit-taking banks efficiently diversify the sources of their customer liquidity, which contributes…

Billion Dollar Brand Name Given Away

Advertising, Agencies, Consulting, Histories

Rework requested Just a few years ago, a cereal was linguistically associated with Kellogg’s. Anyone who spoke of Kellogg’s in Germany thought of cornflakes and vice versa, anyone who thought of cornflakes would also think of Kellogg’s. In the meantime, discount chains – from Germany for example – such as Aldi and Lidl have revolutionized…

The Graveyard of Authorized Credit Rating Agencies in the European Union

Agencies, Authorities, Certifications, Registrations

Rating agencies have been registered in the European Union since 2010 in order to operate in accordance with the EU regulation on rating agencies of 2009 (CRAR). Dozens of agencies have therefore made use of the option, but also the obligation, to register or get certified. Rating agencies are only allowed to operate in the…

coins and a piggy bank

Ernst & Young No Longer Has any Equity on its Balance Sheet


Auditors have been making double-digit million losses for years. At Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (EY) in Germany, “equity” is on the assets side, namely as a “deficit not covered by equity” in the amount of € 62,715,000. The provisions, liabilities, deferred income as well as deferred taxes and fiduciary obligations exceed the company’s assets…

germany flag

Political Network Makes It Possible


Berlin network of politicians, raters and auditors. “Wirecard illusion factory only conceivable through political network”, is a quote from the Cicero, the German magazine for political culture. The members of the committee of inquiry have an unequivocal answer to this. The Christian Democratic Union (CDU) sees Finance Minister Olaf Scholz at the center of the…

photo of red and white toy car

Investment Grade Møller Mobility

Read, Reports

Møller Mobility thrives in symbiosis with Volkswagen. Nordic Credit Rating (NCR) assigned a ‘BBB-‘ (that reads triple B minus) long-term issuer rating to Norway-based car importer and retailer Møller Mobility Group AS (Møller Mobility). The rating agency’s outlook for this credit rating is stable. At the same time NCR assigned an ‘N-1+’ (that reads N…

mannequin wearing red suit

Two Are On The Supervisory Board Of Greensill Bank. Then Why Scope Ratings And Not GBB-Rating?


A Complicated Choice Between Conflicts of Interest. The rating of an independent credit rating agency is a valuable source of information also for the supervisory board of a company, especially for the supervisory board of a bank. The thoroughness of the analysis by credit rating analysts helps to understand the external view onto the company…

black chain

Scope’s Greensill Bank Rating Tragedy

Agencies, Authorities, Governance, Read, Regulations

The Federal Financial Supervisory Authority (BaFin) filed criminal charges Against The Bank’s Board Members. The Federal Financial Supervisory Authority (BaFin) in Germany received monthly reports from Greensill Bank AG (Greensill Bank) about the bank’s balance sheet data from January 2019 on. This is evident from the answer given by Parliamentary State Secretary Sarah Ryglewski on…

ancient architecture archway building

Clever Commission from the City of Münster in Westphalia

Agencies, Analysts, Authorities, Experts

An automated safety net for municipal investments has not existed since 2017. If municipalities do not want to set up extensive bond research departments themselves, in which financial analysts examine thousands of qualitative data and annual financial statements from issuers of financial products, the municipalities depend on the independent judgments of reliable credit rating agencies…

Secured Income by Securing Deposits

Agencies, Clients, Regulations

The system of deposit insurance in the private banking industry makes GBB-Rating almost indispensable. Cologne-based GBB-Rating, a company of the Auditing Association of German Banks, offers credit ratings with a price / performance ratio challenging its US peers. It is approved by the European Supervisory Authorities (ESAs) as an External Credit Assessment Institution (ECAI) for…

crop attractive asian woman putting on mask on street

Concerns About the Impact of COVID-19 on Credit Ratings


The board of the International Organization of Securities Commissions (IOSCO) published the Final Report “Observed Impact of COVID-19 Government Support Measures on Credit Ratings“. IOSCO is the global standard setter for securities markets regulation. The pandemic’s economic and market turmoil led to many credit ratings downgrades and has put credit rating agencies (CRAs) and their…

serious student surfing laptop during studies with classmate

Top Grade for the Distance University Run by the Rating Expert

Education, Experts, Universities

Prof. Dr. Ottmar Schneck, Rector of the SRH Fernhochschule: “WOW – we did the triple! Three times in a row we have now received the coveted ‘Most Popular Distance University’ seal from ‘Distance Learning Check’ (Siegel ‚Beliebteste Fernhochschule‘ von ‚Fernstudium Check). We are very pleased to be able to hold this award from our students…

S&P And Moody’s Are Losing Market Share in the EU

Agencies, Certifications, Read, Registrations, Regulations

For the first time, the European Securities and Markets Authority ESMA has reported a decline in market shares in Europe for both of the major US rating agencies. The authority thus discloses a remarkable development. Never before have the two market leaders, who have been issuing their credit ratings worldwide according to recognized standards and…

SME Rating Dilemma

Agencies, Models, Read, Regulations

Small and medium-sized companies have difficulties communicating their creditworthiness credibly. Recognized credit rating agencies concentrate their services on companies that go through a committee-based rating process. The legal framework in Europe offers no alternative to this. Only those who meet all the requirements of the EU regulation on credit rating agencies can be recognized as…

auto automobile automotive bentley

Credit Rating Criteria for Leasing Companies

Agencies, Criteria, Read

Under the umbrella of the Auditing Association of German Banks, GBB-Rating Gesellschaft für Bonitätsbeurteil mbH (hereinafter referred to as “GBB-Rating”) provides long-term credit ratings of leasing companies. GBB-Rating has published criteria for the rating of leasing companies in German on its website. Unfortunately there was (August 23, 2020) no English translation. In the following are summarized some of their…

Leasing Company Rating

Agencies, Associations, Methodologies, Read, Systems

Leasing companies have been analyzed by leading US credit rating agencies for decades. In addition to these rating agencies, there are other rating approaches for leasing companies. Three of these are briefly presented here. The first relates to a joint initiative by Landesbanken and other credit institutions to operate bank-internal system for rating leasing companies.…

Rating in Austria

Advisors, Agencies, Read

The Recognized Credit Rating Agencies listed by the European Securities and Markets Authority (ESMA) have been registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on Credit Rating Agencies (the Credit Rating Agencies Regulation). The list does not contain a rating agency…

Recognized Credit Rating Agencies

Agencies, Certifications, Read, Registrations, Regulations

There are almost 200 countries in the world. Many countries do not have specific regulations on rating activities, but most industrialized countries do have laws on Credit Rating Agencies (CRAs). Credit Rating Agencies are required to get registered, licensed, recognized or certified. Until the Credit Rating Agency Reform Act of 2006 was introduced in the…

Monetary Authority of Singapore Encourages Ratings By Singapore-dollar Credit Rating Grant

Agencies, Certifications, Read, Registrations, Regulations

The European Commission’s decision to repeal the equivalence status for Singapore Credit Rating Agencies does not impact the operations of Credit Rating Agencies in Singapore. As confirmed by the European Commission, Credit Rating Agencies in Singapore will continue to be able to access the European Union market through the endorsement regime which they currently operate…

Australian Securities and Investments Commission Licensed Credit Rating Agencies

Agencies, Certifications, Read, Registrations, Regulations

The Australian Securities and Investments Commission (ASIC) published an information sheet (INFO 143) for credit rating agencies providing services in Australia. It gives guidance on the meaning of certain conditions that apply to these credit rating agencies under their Australian financial services (AFS) licence. It covers the scope and purpose of Australian Securities and Investments…