37 / 50
Press, Journal Article
37
A further aspect are pension provisions. We only classify
parts of the pension obligation as liabilities, depending
on the level of invested pension assets versus annual
pension payments, as well as the transparency of
businesses when it comes to disclosing pension capital.
This is justified by the fact that part of the pension
obligation is only payable long after the rated bonds and
loans mature.
Europe and the USA also differ substantially with regards
to their corporate cultures. Yet these are not considered
in Anglo-Saxon assessments. However, these play a large
role in differentiating between company- and manager-
led businesses, for example. Family-run companies
in Europe are defined by great stability: Owners forgo
dividends, and prefer to maintain assets for future
generations. This needs to be reflected in the rating.
The choice of comparative data has a great impact
on the rating. This especially plays an important role
when evaluating structured finance activities. In the
past, for example, the performance of European loan
securitisations was significantly more positive than for
US-based transactions. The use of American benchmarks
to rate European transactions is thus incomprehensible,
not just for issuers but for investors as well. Scope
Ratings consistently uses European benchmarks.
A European rating alternative can also distinguish itself
from US agencies through analytical features. These
stem from a tradition when ratings were required,
which continues to negatively impact service quality
and customer orientation today. Here, a European
rating agency can set different standards – for example,
through more transparency and comprehensibility, and
explanations in rating reports. Being more accessible
and communicating proactively can also gain an agency
points, and offer added value against the US agencies.
from Börsen-Zeitung, Supplemental Issue, Frankfurt
am Main, Germany, February 4, 2016.
Responsible for English translation: Scope Ratings AG