Outlooks

A rating outlook is an opinion regarding the likely direction of a rating over a certain time period, usually the medium term. Where assigned, rating outlooks fall into one of several categories such as positive, negative, stable or developing. In the few instances where an issuer has multiple outlooks of differing directions, a modifier (indicating multiple, differing outlooks) might be displayed, and the rating agency’s written research should describe any differences and provide the rationale for these differences. “Rating under review” receives a special designation indicating that the issuer has one or more ratings under review for possible change, and thus overrides the outlook designation. When an outlook has not been assigned to an eligible entity, “no outlook” may be displayed.

Now the Ball is in the Hands of the Credit Rating Agencies

Outlooks

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. The company’s crisis was caused by political decisions – and can also be averted by political decisions.

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Arguments for a More Stable Outlook

Compliances, Outlooks

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 sufficient to change the negative outlook, which was determined by both rating agencies, to a stable outlook or even a positive outlook.

Standard & Poor’s BBB+ / A-2 negative, December 2021

GBB Rating A- / – negative July 2021

The compliance history, which had led to great uncertainty, still weighs heavily on the company. In particular, the confidence of the minority shareholders must be secured.

https://rating.repair/2021/02/26/grenke-informs-about-fruits-of-bafins-special-auditor/

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Clear Rating Target Defined

Outlooks

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 to further strengthen our balance sheet with the aim of achieving a BBB+ rating,” says Oscar Lekander, Head of Business Development, Samhällsbyggnadsbolaget i Norden AB.

The company currently reports on its ratings as follows: