A Comparative Analysis of Internal and External Credit Ratings

Impact on Mid-Market Companies in Germany

Business & Finance, Finance & Investing, Finance
Cover of the book A Comparative Analysis of Internal and External Credit Ratings by Kevin Elsäßer, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Kevin Elsäßer ISBN: 9783668236646
Publisher: GRIN Publishing Publication: June 8, 2016
Imprint: GRIN Publishing Language: English
Author: Kevin Elsäßer
ISBN: 9783668236646
Publisher: GRIN Publishing
Publication: June 8, 2016
Imprint: GRIN Publishing
Language: English

Bachelor Thesis from the year 2015 in the subject Business economics - Investment and Finance, grade: 1,5, EBS European Business School gGmbH, language: English, abstract: The text contains a 'Comparative Analysis of Internal and External Credit Ratings'. It compares and explains both concept, and concludes what impact both have on the Mid-Market Companies in Germany. In 2012, mid-market companies (KMU) based in Germany generated revenues of 2,149.0 billion Euros. They are responsible for 35,3% of all revenues generated in Germany. These mid-market companies employed 15.97 million people, a workforce of 59,6% of all employees in Germany (IFM Bonn, 2014). Clearly, mid-market companies are elementary for the German economy. To continue to be a primary motor of the economy, they need sufficient funding. Nevertheless, financing for mid-market companies in Germany will become more difficult. Standard & Poor's Ratings Services (2015, pp. 2-3) estimated that European mid-market companies are going to have difficulties to meet their financing needs, as banks reduce their lending to the mid-market sector as consequence of stricter regulations. Especially, smaller mid-market companies face problems to access credit loans (Standard & Poor's Financial Services LLC, 2014, p. 3). The reason for these difficulties is the implementation of Basel III. Financial institutions have to deleverage their business during the next years (Zainzinger, 2013). The problem is that mid-market companies traditionally relied on bank funding. Especially German mid-market companies relied on credit loans from financial institutions (Huber & Simmert, 2007, p. 167-196). The new regulations for deleveraging create a 'scarcity of finance for European companies'; it will generate an acute financing problem for mid-market companies (Dimitrijevic & Wade, 2014, pp. 1-2). In 2013, the German mid-market financing gap already amounted to 38,9 billion Euros (KfW, 2014, p. 7). Therefore, these companies have to find new funding sources. They have to find solutions to improve the access to external financing. Credit ratings provide an opportunity to help in this process. The existence of credit ratings is widely known. They often appear in several newspapers, and magazines (Handelsblatt, 2014). Nevertheless, various mid-market companies cannot estimate the impact and importance of credit ratings. Specifically, differences between internal credit and external ratings are often unclear. [...]

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Bachelor Thesis from the year 2015 in the subject Business economics - Investment and Finance, grade: 1,5, EBS European Business School gGmbH, language: English, abstract: The text contains a 'Comparative Analysis of Internal and External Credit Ratings'. It compares and explains both concept, and concludes what impact both have on the Mid-Market Companies in Germany. In 2012, mid-market companies (KMU) based in Germany generated revenues of 2,149.0 billion Euros. They are responsible for 35,3% of all revenues generated in Germany. These mid-market companies employed 15.97 million people, a workforce of 59,6% of all employees in Germany (IFM Bonn, 2014). Clearly, mid-market companies are elementary for the German economy. To continue to be a primary motor of the economy, they need sufficient funding. Nevertheless, financing for mid-market companies in Germany will become more difficult. Standard & Poor's Ratings Services (2015, pp. 2-3) estimated that European mid-market companies are going to have difficulties to meet their financing needs, as banks reduce their lending to the mid-market sector as consequence of stricter regulations. Especially, smaller mid-market companies face problems to access credit loans (Standard & Poor's Financial Services LLC, 2014, p. 3). The reason for these difficulties is the implementation of Basel III. Financial institutions have to deleverage their business during the next years (Zainzinger, 2013). The problem is that mid-market companies traditionally relied on bank funding. Especially German mid-market companies relied on credit loans from financial institutions (Huber & Simmert, 2007, p. 167-196). The new regulations for deleveraging create a 'scarcity of finance for European companies'; it will generate an acute financing problem for mid-market companies (Dimitrijevic & Wade, 2014, pp. 1-2). In 2013, the German mid-market financing gap already amounted to 38,9 billion Euros (KfW, 2014, p. 7). Therefore, these companies have to find new funding sources. They have to find solutions to improve the access to external financing. Credit ratings provide an opportunity to help in this process. The existence of credit ratings is widely known. They often appear in several newspapers, and magazines (Handelsblatt, 2014). Nevertheless, various mid-market companies cannot estimate the impact and importance of credit ratings. Specifically, differences between internal credit and external ratings are often unclear. [...]

More books from GRIN Publishing

Cover of the book The Persian Gulf War and its aftermath by Kevin Elsäßer
Cover of the book Umweltaktivisten in China by Kevin Elsäßer
Cover of the book National Conflicts: Prevention, Management and Resolution by Kevin Elsäßer
Cover of the book William Blake's idiosyncratic beliefs and his poetry by Kevin Elsäßer
Cover of the book From the red blood to the crimson scar: comparing the voice of protest and suffering in the works of Ida B Wells Bartnett and Ann Petry by Kevin Elsäßer
Cover of the book Coupling of Capillary Electrophoresis with Nuclear Magnetic Resonance Spectroscopy for the Analysis of Pharmaceutical and Environmental Relevant Compounds by Kevin Elsäßer
Cover of the book The advantages and disadvantages of relationship management by Kevin Elsäßer
Cover of the book User Guide for Trainee Network Administrators - DHCP, WINS, IIS, Proxy by Kevin Elsäßer
Cover of the book Prerequisites of return and reintegration for long term internally displaced persons in Northern Uganda by Kevin Elsäßer
Cover of the book Baroness Elsa von Freytag-Loringhoven: Her Life, Art and Postion in New York Dada by Kevin Elsäßer
Cover of the book Interpretation von drei Szenen aus dem Film 'The Aviator' mithilfe von Analysekategorien nach Goffmann by Kevin Elsäßer
Cover of the book The Great Irish Famine and Factors that contributed to its Intensity by Kevin Elsäßer
Cover of the book The EC Banana Regime - a Testcase for the Relationship between WTO, Regional and National Law by Kevin Elsäßer
Cover of the book African, Arab and Asian financial organizations by Kevin Elsäßer
Cover of the book The influence of politics on the development of newspapers between 1660 and 1855, at the example of 'The Times' by Kevin Elsäßer
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy