Scope Ratings assigns a BB+ to ADLER’s senior unsecured EUR 10m convertible bond 2013/2017 (ISIN DE000A1TNEE3), given the recovery expectations that we view as ‘excellent’ (90-100%), which is due mainly to the senior-ranking character of the debt facility.

Scope has also assigned instrument ratings of BB- to the following debt instruments:

• EUR 35m bond 2013/2018 (ISIN DE000A1R1A42),
• EUR 130m bond 2014/2019 (ISIN DE000A11QF02),
• EUR 11.25m convertible bond 2013/2018 (ISIN DE000A1YCMH2),
• EUR 350m bond 2015/2020 (ISIN XS1211417362) and
• EUR 138m convertible bond (ISIN DE000A161XW6).

All ratings reflect our recovery expectation that we view as ‘average’ (30-50%).

The EUR 175m mandatory convertible bond 2015/2018 (ISIN DE000A161ZA7) is rated B- as recovery expectations are ‘very low’ (0-10%).

Download the full rating report.

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, Executive Board: Torsten Hinrichs (CEO), Dr. Stefan Bund, Dr. Sven Janssen.

The rating analysis has been prepared by Philipp Wass, Lead Analyst
Responsible for approving the rating: Olaf Tölke, Committee Chair

Rating History - EUR 10m convertible bond 2013/2017 (ISIN DE000A1TNEE3) (Date | Rating action | Rating)
2 September 2016 I Initial Rating I BB+ I Stable

Rating History - EUR 35m bond 2013/2018 (ISIN DE000A1R1A42)
2 September 2016 I Initial Rating I BB- I Stable

Rating History - EUR 130m bond 2014/2019 (ISIN DE000A11QF02)
2 September 2016 I Initial Rating I BB- I Stable

Rating History - EUR 11.25m convertible bond 2013/2018 (ISIN DE000A1YCMH2)
2 September 2016 I Initial Rating I BB- I Stable

Rating History - EUR 350m bond 2015/2020 (ISIN XS1211417362)
2 September 2016 I Initial Rating I BB- I Stable

Rating History - EUR 175m mandatory convertible bond 2015/2018 (ISIN DE000A161ZA7)
2 September 2016 I Initial Rating I B- I Stable

Rating History - EUR 138m convertible bond (ISIN DE000A161XW6)
2 September 2016 I Initial Rating I (P)BB- I Stable

The rating outlook indicates the most likely direction of the rating if the rating were to change within the next 12 to 18 months. A rating change is, however, not automatically ensured.

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.

Key sources of information for the rating
• Prospectus
• Website of the rated entity
• Valuation reports
• Annual financial statements
• Annual reports/semi-annual reports of the rated entity
• Information provided on request
• Data provided by external data providers
• External market reports
• Press reports / other public information
• Interview with the rated entity

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
Prior to publication, the rated entity was given the opportunity to examine the rating and the rating drivers, including the principal grounds on which the credit rating or rating outlook is based. The rated entity was subsequently provided with at least one full working day, to point out any factual errors, or to appeal the rating decision and deliver additional material information. Following that examination, the rating was not modified.

Methodology
The methodologies applicable for this rating (Corporate Rating Methodology, Rating Methodology - European Real Estate Corporates) are 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
© 2016 Scope Corporation AG and all its subsidiaries including Scope Ratings AG, Scope Analysis, Scope Investor 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