DFAG´s change in rating review direction results from its successful removal from the blacklist of the US-American Office of Foreign Assets Control (“OFAC”) on 16 October 2014. This recent event is credit-positive as it allows the company to resume its operating business and increases the likelihood of a going concern. In addition, the company has signalled a possible equity and/or debt restructuring which could significantly improve the company’s liquidity and debt profile. The review on the rating, however, remains under developing outcome, because the pace of DFAG´s operating recovery remains uncertain.

OFAC blacklisting significantly weakened DFAG’s financial position. The OFAC blacklisting on 6 February 2014 has led to an operating standstill within the company, as DFAG was prohibited to conduct any forfaiting of receivables denominated in US dollars. As a result, DFAG accounted for a consolidated net loss of EUR 9.0m over the first 9 months of 2014 which significantly reduced the company’s liquidity and equity position.

Improved position for financing. Given the successful deletion from the sanction list, DFAG now has the ability to resume its operating business and to sell existing receivables positions in order to strengthen its liquidity position. As a consequence, Scope expects the ability of the company to pursue possibilities for equity and/or debt financing to improve in the coming weeks.

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

The rating analysis has been prepared by Sebastian Zank, Lead Analyst
Responsible for approving the rating: Guillaume Jolivet, Committee Chair

Rating history
17.10.2014 CCC under review with a developing outcome
21.07.2014 CCC under review for possible downgrade
26.03.2014 B- under review for possible downgrade
14.02.2014 BB+ under review for possible downgrade
02.05.2013 BB+ outlook Positive

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 AG 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 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 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.

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 Corporate Rating 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.
 
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