REWE Group’s BBB rating renewed

On 14 August, international rating agency Standard & Poor’s published its rating of the REWE Group’s creditworthiness, once again assessing it as “BBB” (outlook stable). This means it continues to view the Cologne-based retail and tourism group as a stable issuer with sound creditworthiness.

This is a very good rating for a retail and tourism group, says Telerik Schischmanow, CFO of the REWE Group. It vindicates our strategy of sustainable, long-term growth. We are delighted that Standard & Poor’s has recognised the REWE Group’s continuously positive growth over the past few years and is confident in our financial strength and strategy. Especially in the current climate, this credit rating is a strong sign of security and stability.

Rating rationale

In its analysis, Standard & Poor’s particularly commends the REWE Group’s stable business profile and excellent market positions in Germany, Austria and the Czech Republic. It also recognises the REWE Group’s role as a driver of innovation: for example, it was one of the first retail companies to introduce convenience formats, focus on regional and organic produce, and offer online food retail across Germany. The rating agency also assesses the REWE Group’s diversified brand and product portfolio as a positive factor that contributes to its stability.
With a sound investment-grade BBB rating, the REWE Group cooperative was assessed as level 9 out of 22, and is therefore performing very well compared with competitors – including listed companies.

First cooperative to receive a rating

Standard & Poor’s provided its first rating for the REWE Group in 2010, making the REWE Group the first cooperative in Germany with an internationally recognised rating. Since the initial rating process, the investment grade rating has been constantly monitored and updated in annual management meetings and through continuous communication between the REWE Group and the rating agency. It certifies the Group’s security and stability to third parties, enables investors to assess its creditworthiness, and therefore provides access to capital market funding. This has enabled the REWE Group to tap the capital market as an additional source of funding.

Plans and investments

Last year, the REWE Group issued a sustainability-linked bond for the first time, which generated a large amount of interest. This bond is helping to secure funds for future growth and investments in digitalisation and automation. In addition, the Group is investing strategically in real estate in order to make itself less vulnerable to rent increases and retain control over site development. These investments are also important from a sustainability standpoint, because they enable installation of photovoltaic systems and charging infrastructure for electric vehicles.