German ratings agencies merge to gain clout in U.S.-dominated market
30/06/2016 14:22
FRANKFURT, June 30 (Reuters) - Two small German ratings
agencies with a combined European market share of less than 3
percent are merging to increase their clout in a market
dominated by the big three U.S. groups Standard & Poor's,
Moody's and Fitch.
Berlin-based Scope said on Thursday it was acquiring Feri
Eurorating from financial services group MLP MLPG.DE for an
undisclosed sum and would expand its coverage to include
sovereign ratings.
Scope was founded in 2013 and is owned by a group of
investors including many former managers of German financial
services groups.
Despite growth of more than 50 percent over the last 12
months, as of June 2016 Scope had sales of less than 50 million
euros ($56 million). It is still making a loss but expects to
break even this year, before interest, taxes, depreciation and
amortisation.
Scope, half of whose sales derive from German clients, rates
financial services groups, corporates, structured finance
products and alternative investments, while Feri specialises in
funds and real estate ratings.
European Union attempts to inject more competition into
credit ratings have so far failed to get off the ground. The Big
Three account for 92 percent of the market, according to data
from the EU's European Securities and Markets Authority
(ESMA). urn:newsml:reuters.com:*:nL8N1471SN
($1 = 0.9009 euros)
(Reporting by Arno Schuetze; editing by David Clarke)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))
Keywords: FERI M&A/SCOPE