REWE Group Awarded Rating: BBB- (Stable Outlook)
Cologne, 16.03.10
Important Milestone Along the Path of the Company's Further Development
This rating is within the "Investment Grade" range. Many institutional investors such as pension funds are obligated by law or their own organisational charters to invest solely in bonds from companies which satisfy these quality requirements. Besides making a positive statement regarding creditworthiness, the rating also indicates that REWE Group accepts the stringent demands of the financial market with respect to transparency. Besides REWE Group, Metro is the only company in German retail food trade which has a rating.
As part of its analysis, the rating agency Standard & Poor's honoured the stable business profile of REWE Group and the healthy business development in the fiscal year 2009.
Further positive aspects included the outstanding market position in Germany and Austria and good international diversification in another 15 countries. The solid liquidity position of the company also scored points.
REWE Group did not receive a higher rating because of the relatively high indebtedness currently carried on the books, the consequence of high expenditures for acquisitions in 2008. Among other activities in 2008, REWE Group acquired 245 Extra stores from Metro and 474 Plus stores in Germany and the Czech Republic from the Tengelmann Group.
The decision to seek a rating was based on the conviction that a diversification in the financing sources with greater independence from the banks was required in view of the changes on the financial markets. Thanks to this rating, REWE Group has laid the foundation for procuring funds from the capital market as well.
This good rating is proof of the value of the strategic work on the part of the Management Board with respect to the tightening of the corporate structures and the solid financial policies of REWE Group.
"Requirements based on market strategy led to record acquisitions for REWE Group in 2008, which of course have had an impact on our financial indicators. The goal of our financial policies is to steer the relevant performance indicators in the direction of BBB over the next two years," stated Norbert Fiebig, CFO of REWE Group. "Our finance objectives are clearly oriented towards this target. At the same time, we are presuming that overall economic conditions will stabilise."
"But in addition to the financing aspects, we have secured a new, critical and important stakeholder in terms of the corporate governance of REWE Group as well in this rating agency," Fiebig continued.
Contact
REWE GROUP-Corporate Communications
Tel.: 0221 - 149-1050
E-Mail: presse(at)rewe-group.com
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