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Requirements Relating to Press Releases or Reports

News, Read, Reports

The text of publications must meet strict requirements.

The European Securities and Markets Authority considers that a credit rating or rating outlook should be accompanied by a press release or report. The press release or report should explain the key elements underlying the credit rating or rating outlook.

At least the following elements should be included::

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Where it would be disproportionate in length to include the full underlying detail of the above elements in the press release or report accompanying the credit rating or rating outlook, the European Securities and Markets Authority expects that credit rating agencies make clear and prominent reference where this underlying detail can be directly and easily accessed through direct web-link. Notwithstanding this, the Authority considers that the inclusion of the core of the above elements in the press release or report is necessary and proportionate to the overall length of the press release or report.

Internet Oligopoly is Hindering Online Retail Growth


China strengthens small and medium-sized enterprises.

On 5 March 2021, the Government of China (rated A1 stable by Moody’s) said it will encourage internet companies to reduce commissions to an appropriate level for merchants that transact on these internet companies’ platforms. “The government did not specify the level of potential commission reduction in its directive,” writes Moody’s in its report, “and is likely to gauge its effectiveness in terms of expanding market access.”

The instruction aims to boost migration of goods sales and services to online platforms and forms an integral part of the government’s economic development. This shift of business to online platforms has multiple consequences, including the security of business and the stability of social relationships in China. A social credit system can only function effectively if as many, if not all, transactions by citizens as possible are recorded in real time.

Moody’s sees that Internet companies have strong buffers against near-term challenges: “Most have strong financial profiles and good access to funding, which will help them navigate near-term business fluctuations.”

However, the immediate effects are initially negative, as Moody’s writes: “This directive is credit negative for internet companies because it could stall revenue growth and earnings growth. Companies such as Alibaba Group Holding Limited (A1 stable),, Inc. (Baa1 stable), Vipshop Holdings Limited (Baa1 stable) and Meituan (Baa3 stable) derive a substantial portion of revenue from merchant commissions, which are fees they charge merchants that transact market products and services on internet platforms.”

A team from Moody’s Investors Service has been digging deep into the consequences: Ying Wang, VP-Senior Analyst, Lina Choi, Senior Vice President, Chi Kit Edward Lam, Associate Analyst, Clement Wong, Associate Managing Director: “We project that rated Chinese internet companies will grow revenue 15%-20% and EBITDA 10%-15% in 2021, largely similar to the growth rates in 2020 despite the economic recovery in China this year.”

An increasing number of merchants will provide goods and services, especially smaller merchants that have been previously prohibited by high commission charges and the market for online retail and services will broaden over time, stimulate merchant growth and support sector growth in the long term, expects Moody’s.

In 2020 DEFAMA Once Again Achieved Highs in All Key Figures


DEFAMA promised to publish the audited figures and the 2020 annual report at the end of April 2021.

According to preliminary and unaudited figures, Deutsche Fachmarkt AG (DEFAMA) achieved a consolidated net income of € 2.5 (2.1) million or € 2.5 (2.1) million in the 2020 financial year with sales of € 14.8 (previous year: 11.2) million . Earned € 0.57 (0.51) per share. This corresponds to an increase of 21%. Funds From Operations (FFO) were € 5.8 (4.6) million or € 1.32 (1.14) per share, an increase of 26%.

DEFAMA has thus achieved the forecasts in the Corona year or even slightly exceeded them for FFO as a central control parameter, although the Management Board has made precautionary value adjustments in the low six-digit range on outstanding payments from tenants that are affected by the lockdown. The management board and the supervisory board want to propose to the general meeting that a dividend be increased from 45 to 48 cents per share.

For the current year DEFAMA is still aiming for an increase in FFO to around € 7.1 million or € 1.61 per share. The annualized FFO of the portfolio should reach at least € 8.0 million by the end of the year. The target figure for the annual surplus is € 3.1 million, which corresponds to € 0.69 per share. According to the communicated distribution policy, the company intends to raise the dividend again for 2021.

DEFAMA currently has a portfolio of 43 retail parks with a total of 179,000 sqm of usable space, more than 96% of which are let. The annualized annual net rent amounts to a good € 14 million. The largest tenants include ALDI, EDEKA, LIDL, Netto, NORMA, Penny, REWE, Getränke Hoffmann, Dänisches Bettenlager, Deichmann, Takko and toom.

2020 Becomes the First Year of Digital Currency

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From October 8th to 18th, 2020, Luohu District, Shenzhen, China, conducted a digital currency experiment, issuing digital currency red envelopes totaling 10 million RMB (approximately 1.5 million Dollars). From the 8th to the 11th October, 1,913,800 Shenzhen residents reserved a lottery for red envelopes, and 50,000 of them received digital RMB red envelopes, each at 200 yuan (about 30$). A bank from the four major banks (ICBC, Agricultural Bank of China, Bank of China, China Construction Bank) should be chosen as the bank to receive the red envelope. Different banks have different colors of digital RMB.

After downloading the “Digital RMB App”, the digital currency in the red envelope can be spent no threshold at 3,389 merchants in Luohu District, Shenzhen, within seven days from the 12th to the 18th October. Red envelopes can only be consumed, and cannot be transferred or exchanged. The red envelopes that have not been used before 24:00 on October 18 will be retaken by the digital RMB system.

Since 2014, the digital currency technology has been developed, internally tested, and improved in the central bank of China. This digital currency red envelope experiment is the first large-scale contact between the central bank’s digital currency and ordinary citizens and merchants. It is supposed to collect data for further large-scale implementation.

This is a landmark, marking the official landing of the central bank’s digital currency, and 2020 officially becomes the first year of digital currency. The essence of currency is credit. Credit is the foundation of human exchange, division of labor, and technological progress. Human beings have gone through the era of commodity credit and national credit, and will enter the era of technological credit in 2020.

Legal Issues in Ratings

Books, News, Notching, Platforms, Procedures, Registrations, Regulations, Repositories

Ann-Kristin Achleitner and Oliver Everling (Editor): Legal Issues in Ratings: Fundamentals and Implications of Ratings for Agencies, Investors and Companies Advised, Betriebswirtschaftlicher Verlag Th. Gabler, Wiesbaden 1st edition November 2005,, hardcover, 470 pages, ISBN 3-409-14314-9.

The issuing of ratings by external rating agencies as well as internal ratings are of increasing relevance for the refinancing processes as well as for investment decisions on the part of investors. The book outlines the main legal implications of ratings for agencies, investors and rated companies.

Ann-Kristin Achleitner und Oliver Everling (Herausgeber): Rechtsfragen im Rating: Grundlagen und Implikationen von Ratings für Agenturen, Investoren und geratete Unternehmen, Betriebswirtschaftlicher Verlag Dr. Th. Gabler, Wiesbaden 1. Auflage November 2005,, gebundene Ausgabe, 470 Seiten, ISBN 3-409-14314-9.