olivereverling
olivereverling
RATING©REPAIR
614 posts
Creating a World of Trust and Confidence
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olivereverling · 6 days ago
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Potential Consequences for Scope Ratings if Greensill Bank Allegations Are Confirmed
If the serious allegations surrounding the collapse of Greensill Bank are confirmed, significant consequences could loom for the Berlin-based credit rating agency Scope Ratings. As the agency to have provided Greensill Bank with a credit rating prior to its dramatic collapse in March 2021, Scope may face legal, reputational, and regulatory fallout. Legal Risks: Exposure to Claims for…
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olivereverling · 20 days ago
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MSCI and Moody’s Forge Strategic Alliance to Enhance Private Credit Risk Assessment
In a significant move to bolster transparency and consistency in the private credit market, MSCI Inc. (NYSE: MSCI) and Moody’s Corporation (NYSE: MCO) have announced a strategic partnership aimed at delivering independent risk assessments for private credit investments at scale.​ “As the private credit market continues to evolve and grow, the need for consistent standards and better tools has…
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olivereverling · 23 days ago
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The Relevance of EBA’s ESG Scenario Analysis Guidelines for Credit Rating Agencies
As climate change and broader sustainability considerations increasingly shape financial risk landscapes, the European Banking Authority’s (EBA) recent Guidelines on ESG Scenario Analysis represent a pivotal regulatory milestone. While primarily targeted at credit institutions, these guidelines carry substantial implications for credit rating agencies (CRAs), whose methodologies must keep pace…
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olivereverling · 1 month ago
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ESMA Imposes Fine on Modefinance S.r.l. for Misleading Use of Its Name
The European Securities and Markets Authority (ESMA) has fined the Italian credit rating agency Modefinance S.r.l. EUR 420,000 for breaching the Credit Rating Agencies Regulation (CRA Regulation). The penalty was imposed after the company was found to have misleadingly used ESMA’s name in statements regarding its credit rating activities. Misuse of ESMA’s Name According to ESMA, Modefinance…
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olivereverling · 1 month ago
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Stable Credit Ratings Ahead, Amid Trade Tariffs: A Clear Framework for Negotiations
In response to the newly announced international trade tariffs, Johanna Kyrklund, Group Chief Investment Officer at Schroders, and George Brown, Economist at Schroders, provide insight into the economic implications, including potential effects on growth, inflation, and the most affected countries. While initial reactions have been negative, a closer analysis suggests that these developments may…
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olivereverling · 1 month ago
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The Issue of Implied State Support and the New BaFin Circular 06/2025 (BA) on the Exercise of the Option under Article 495e CRR
The topic of implied state support in financial regulations has been a matter of discussion for years, particularly in relation to credit assessments and risk-weighted assets under the Capital Requirements Regulation (CRR). The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has recently issued Circular 06/2025 (BA), which provides clarity on the exercise of the option under Article 495e…
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olivereverling · 2 months ago
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European Investors Reassess US Equities as Bond Inflows Surge
European investors are rethinking their approach to US equities as the latest data from LSEG Lipper suggests a shift in sentiment. While 2024 saw strong inflows into the European fund industry—pushing assets under management (AUM) beyond €15.5 trillion—early 2025 has brought signs of caution. In particular, US equity ETFs experienced significant outflows of €1.44 billion in February, reflecting…
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olivereverling · 2 months ago
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Analysis of the FiDA Proposal from a Credit Rating Agency Perspective
The proposed Financial Data Access Regulation (FiDA) aims to enhance competition and innovation in the European financial market by facilitating data sharing. However, the Deutsche Kreditwirtschaft (DK) has raised significant concerns regarding its implementation, arguing that it imposes excessive burdens on financial institutions and lacks a well-defined scope. From the perspective of a credit…
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olivereverling · 2 months ago
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Deutsche Bank’s 2024 Annual Report: Liquidity and Credit Ratings in Focus
The Deutsche Bank recently released its 2024 Annual Report, providing insights into its liquidity and capital management, as well as its credit ratings from major rating agencies. The report highlights the bank’s progress in strengthening its financial position, despite a dynamic economic and geopolitical environment. Liquidity and Capital Management The bank’s liquidity risk management is…
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olivereverling · 2 months ago
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Regulatory Update: The Exercise of the Discretionary Right Under Article 495e CRR
The German Federal Financial Supervisory Authority (BaFin) has recently issued a draft circular (xx/2025 BA) concerning the exercise of the discretionary right under Article 495e of the Capital Requirements Regulation (CRR). This document provides guidelines for certain financial institutions on the continued use of External Credit Assessment Institution (ECAI) ratings that assume implicit…
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olivereverling · 2 months ago
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A Political Defeat That Might Turn into an Opportunity
At first glance, failing to clear the five-percent hurdle in the 2025 Bundestag election seems like a catastrophic defeat for the FDP. Having lost significant support as a junior partner in the previous traffic light coalition, the party could not recover from its downward trajectory. However, when considering the political and economic realities of the new legislative period, it becomes clear…
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olivereverling · 2 months ago
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Implications for Credit Ratings: Japan’s Market Transformation and Corporate Reform
Japan’s stock market is undergoing a fundamental transformation that goes beyond short-term cyclical trends, according to June-Yon Kim, Lead Portfolio Manager for Japanese equities at Lazard Asset Management. For decades, Japan’s equity market had been weighed down by deflation and structural inefficiencies. However, this has been followed by a prolonged phase of remarkable transformation,…
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olivereverling · 2 months ago
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Navigating the Fixed Income Landscape in 2025: A Strategic Perspective
The year 2025 has begun with volatility in fixed income markets, largely driven by fluctuations in 10-year Treasury yields. Inflation concerns and uncertainty regarding trade policy and the Federal Reserve’s monetary strategy have contributed to the unpredictable landscape. According to UBP, “The Fed remains cautious about further rate cuts due to persistent inflation, leading to a…
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olivereverling · 3 months ago
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Moody’s Margin Development: 2024 Performance and 2025 Outlook
Moody’s Corporation demonstrated strong margin expansion in 2024, driven by revenue growth, cost efficiency measures, and disciplined execution. The company’s operating margin increased from 36.1% in 2023 to 40.6% in 2024, reflecting higher revenue across both Moody’s Investors Service (MIS) and Moody’s Analytics (MA). Adjusted operating margin saw an even stronger improvement, rising from 43.9%…
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olivereverling · 3 months ago
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Powering Financial Markets: The Pivotal Role of S&P Global Ratings
S&P Global Inc. (SPGI) has solidified its position as a leader in financial intelligence and analytics, with its Ratings business playing a crucial role in its sustained growth and profitability. As one of the world’s foremost credit rating agencies, S&P Global Ratings provides essential insights into credit risk, helping investors and institutions make informed decisions. This article explores…
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olivereverling · 3 months ago
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Higher Price Elasticity of Demand: A Double-Edged Sword Amid Rising Tariffs on European Vehicle Makers
The introduction of higher tariffs on vehicle imports by the United States presents a complex challenge for European original equipment manufacturers (OEMs). While much of the focus has been on direct trade impacts and supply chain disruptions, there is a subtler economic dynamic at play: the role of price elasticity of demand. Higher price elasticity, often seen as a competitive advantage, could…
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olivereverling · 3 months ago
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In Memoriam: Prof. Dr. Horst Köhler (1943–2025)
The Scope Foundation mourns the loss of Prof. Dr. Horst Köhler, a distinguished member of its Honorary Board. Prof. Dr. Horst Köhler, former Federal President of Germany, has passed away at the age of 81. Known for his extensive contributions to public service and his commitment to fostering international dialogue, Köhler leaves behind a legacy of leadership and dedication to societal…
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