Scope Ratings (Scope) has placed the BBB- rating of CODIC International SA (CODIC) on review for possible downgrade. This rating action is primarily driven by a revision of Scope´s rating methodology for non-financial corporates published on March 28, 2014. This rating action reflects the possible negative impact of the methodology revision on CODIC’s rating. The action also incorporates CODIC’s past performance over the last 18 months affected by mixed market conditions resulting in limited growth rates for European real estate developers.

The review will focus on reassessing the impact of Scope’s revised rating methodology including among others evolutions the stronger focus on forward-looking analysis and on qualitative elements, and a recalibration of the financial ratios used in the rating framework. In addition, Scope will incorporate into the analysis the latest business and financial performance indicators of CODIC, collected during the review period. The new methodology is available on Scope´s website at www.scoperatings.com

Since the implementation of its revised methodology Scope has immediately begun reassessing all of its outstanding corporate ratings and expects a negative impact on the ratings of a large number of European SME issuers and their debt, resulting in possible rating actions. These rating actions will be released as soon as analyses are completed.

About CODIC International SA
CODIC International is a real estate developer in Europe which has been active in Belgium since 1970, in Luxembourg since 1989 and in France since 1990. These three regions represent the core markets of CODIC.

The group is specialized in the development of multifunctional, office, business parks and shopping center in Europe. In the last 10 years the company has developed over 1 million square meters of commercial space. CODIC works with reputable architects, presenting innovative designs and architecture and is successful in positioning itself for large international contests. Furthermore CODIC is experienced as co-developer.

About Scope Ratings
Scope was founded as an independent rating agency in Berlin, Germany, in 2002. The company is specialized in ratings and analysis of SMEs, bonds, financial institutions, certificates and funds across Europe. Scope is certified by ESMA as an official credit rating agency (CRA) in the European Union.

More information about Scope on www.scoperatings.com.


REGULATORY DISCLOSURES

Important information
Information pursuant to Regulation (EC) No 1060/2009 on credit rating agencies, as amended by Regulations (EU) No. 513/2011 and (EU) No. 462/2013

Responsibility
The party responsible for the dissemination of the financial analysis is Scope Ratings GmbH, Berlin, District Court for Berlin (Charlottenburg) HRB 145472, directors: Thomas Morgenstern, Florian Schoeller.
The rating has been prepared by Philipp Wass, Senior Analyst.
Responsible for approval of the rating was Thomas Morgenstern (Managing Director).

Rating history
CODIC International SA – Belgium: under review for possible downgrade, previously rated BBB- on 12.07.2013

Information on interests and conflicts of interest
The rating was prepared independently by Scope Ratings but for a fee based on a mandate of the rated entity.

As at the time of the analysis, neither Scope Ratings GmbH nor companies affiliated with it hold any interests in the rated entity or in companies directly or indirectly affiliated to it. Likewise, neither the rated entity nor companies directly or indirectly affiliated with it hold any interests in Scope Ratings GmbH or any companies affiliated to it. Neither the rating agency, the rating analysts who participated in this rating, nor any other persons who participated in the provision of the rating and/or its approval hold, either directly or indirectly, any shares in the rated entity or in third parties affiliated to it. Notwithstanding this, it is permitted for the above-mentioned persons to hold interests through shares in diversified undertakings for collective investment, including managed funds such as pension funds or life insurance companies, pursuant to EU Rating Regulation (EC) No 1060/2009. Neither Scope Ratings nor companies affiliated with it are involved in the brokering or distribution of capital investment products. In principle, there is a possibility that family relationships may exist between the personnel of Scope Ratings and that of the rated entity. However, no persons for whom a conflict of interests could exist due to family relationships or other close relationships will participate in the preparation or approval of a rating.

Key sources of Information for the rating
Annual financial statements, annual reports/semi-annual reports of the rated entity/issuer, external market reports, external market reports, data provided by the issuer or/and external data providers, website of the rated entity/issuer, research Scope Group.

Scope Ratings considers the quality of the available information on the evaluated company to be satisfactory. Scope ensured as far as possible that the sources are reliable before drawing upon them, but did not verify each item of information specified in the sources independently.

Examination of the rating by the rated entity prior to publication
The rated entities have been given the opportunity to examine the rating action prior to publication. Following that examination, the rating was not modified.

Methodology
The methodology applicable for this rating (Corporate Rating Methodology published in March 2014) is available on www.scoperatings.com. The historical default rates of Scope Ratings can be viewed on the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s default rating, definitions of rating notations and further information on the analysis components of a rating can be found in the documents on methodologies on the rating agency’s website.
 
Conditions of use / exclusion of liability
© 2014 Scope Corporation AG and all its subsidiaries including Scope Ratings GmbH, Scope Analysis GmbH, Scope Capital Services GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope cannot, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided “as is” without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or otherwise damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party, as opinions on relative credit risk and not as a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin.

Rating Agency
Scope Ratings GmbH, Lennéstraße 5, 10785 Berlin

Competent supervisory authority
European Securities and Markets Authority (ESMA)
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