According to Scope’s rating methodology for corporate debt instruments, the rating of a corporate debt instrument is primarily determined by the corporate issuer credit rating (CICR). The latter can be adjusted up- or downwards dependent on the assumed recovery rate upon default of the issuer. In its rating approach, Scope estimates the assumed recovery rate upon default by taking into account the estimated value of claims at default available for creditors, as well as the size and ranking of claims in the waterfall of claims.

The application of this approach leads Scope to place the following three bond ratings under Review for Possible Downgrade:

- Hahn-Immobilien-Beteiligungs AG’s A- rated EUR20m bond with a coupon of 6.25% (maturity: 2017)

- Stern Immobilien AG’s EUR17.25m A- rated bond with a coupon of 6.25% (maturity: 2018)

- Immobilien-Projektgesellschaft Salamander-Areal Kornwestheim (IPSAK) mbH‘s A- rated EUR30m bond with a coupon of 6.75% (maturity: 2019)

The rating reviews will be resolved within the next six months, as soon as Scope has obtained all information needed to resolve the reviews.

Download complete corporate rating methodology

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 AG, Berlin, District Court for Berlin (Charlottenburg) HRB 161306 B, Chief Executive Officer: Florian Schoeller.

The rating analysis has been prepared by Philipp Wass, Lead Analyst
Responsible for approving the rating: Dr. Britta Holt, Committee Chair

Rating history Corporate Bond Rating Hahn-Immobilien-Beteiligungs AG
04.09.2013 Confirmation A- stable
05.09.2012 Initial Rating A- stable

Rating history Corporate Bond Rating Stern Immobilien AG
26.06.2014 Confirmation A- stable
30.04.2013 Initial Rating A- stable

Rating history Corporate Bond Rating Immobilien-Projektgesellschaft Salamander-Areal Kornwestheim
29.11.2013 Downgrade A- stable
03.12.2012 Initial Rating A none

Usually a credit rating is accompanied by a rating outlook, which can be Stable, Positive or Negative. The Positive and Negative outlooks would normally refer to a time period of 12-18 months. These outlooks do not necessarily signal that a rating upgrade or downgrade, respectively, will automatically follow. The probability of such a rating outcome, however, would be higher than 50%.

Information on interests and conflicts of interest
The ratings were prepared independently by Scope Ratings but for a fee based on a mandate of the issuer of the investment

As at the time of the analysis, neither Scope Ratings AG nor companies affiliated with it hold any interests in the rated entities or in companies directly or indirectly affiliated to them. Likewise, neither the rated entities nor companies directly or indirectly affiliated with them hold any interests in Scope Ratings AG 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 entities or in third parties affiliated to them. 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 entities. 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
- Prospectus
- Website of the rated entity/issuer
- Valuation reports, other opinions
- Annual reports/semi-annual reports of the rated entity/issuer
- Detailed information provided on request
- Press reports / other public information
- Annual financial statements
- Data provided by external data providers
- Interview with the rated entity
- External market reports
- Interview with the issuer

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 report by the rated entity prior to publication / Modification of the report after the examination
The rated entities were given the opportunity to examine the press release prior to publication. Following that examination, the press release was not modified.

Methodology
The methodology applicable for this rating (Corporate Bond Rating - published 17 September 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 AG, Scope Analysis, 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 AG at Lennéstraße 5 D-10785 Berlin.

Rating issued by
Scope Ratings AG, Lennéstrasse 5, 10785 Berlin

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