MONDAY, 20/01/2025 - Scope Ratings GmbH

HORNBACH is the latest European company to mandate Scope Ratings

Scope’s mandated ratings of European companies continues to grow with the addition of HORNBACH to its coverage.

The rating mandate from HORNBACH, one of Europe’s largest DIY retailers, follows the recent acceptance and implementation of Scope’s credit ratings by the ECB for the central bank’s monetary policy operations, confirming Scope’s position as the leading European rating agency.

Mirko Sawary, Head of Treasury and Corporate Finance at HORNBACH Group, said: “By choosing Scope, we can present our investors with a European perspective on our company's credit quality. We are proud to have achieved an investment grade rating of BBB- in our initial Scope issuer rating process.”

Sebastian Zank, Head of Corporate Credit Rating Production at Scope Ratings, said: “We are delighted that HORNBACH has chosen Scope Ratings to provide an independent view on their credit risk, underscoring our distinctive analytical approach as the European rating agency. The rating follows a number of other public ratings on large European corporates and demonstrates Scope’s value proposition as an alternative to the US-based rating agencies.”

Scope rates HORNBACH at BBB-/Stable. The rating is based on the company's equally good business and financial risk profiles. “The rating in particular benefits from the high market share in large and mature markets, broad geographic diversification and strong cash conversion, which helps to maintain the good level of leverage as well as strong interest cover”, said Philipp Wass, lead analyst at Scope Ratings.

On HORNBACH: HORNBACH Holding AG & Co. KGaA is a publicly listed German company with a 140-year history and is one of the largest DIY (do-it-yourself) retailers in Europe with more than 170 stores and garden centers employing more than 25,000 staff.

On Scope’s corporate rating coverage: Scope currently rates around 280 European companies and around 3,500 corporate bonds. According to the recent ESMA market share report (page 10) Scope’s rating coverage among European companies is the third largest of all rating agencies. Scope’s total rating coverage includes solicited and unsolicited ratings.

On Scope’s corporate rating methodology: With ratings and research rooted in a European perspective on corporate performance which pays close attention to regional differences, we provide a diversity of credit opinion that enhances the ability of issuers and investors to manage risk and improve return. Scope’s modular, flexible and opinion-driven methodologies strike an appropriate balance between analytical consistency and issuer-specific characteristics, notably regarding corporate structures, pensions, cash management, ownership and owners’ business philosophy. See all of Scope’s corporate rating methodologies here.

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