Fixed Income & Ratings

Ratings

Ratings evaluate the ability of a company to meet its financial obligations. They communicate the creditworthiness of a company to potential debt capital investors and enable it to obtain attractive financing conditions on international capital markets. CECONOMY AG is continuously evaluated by two rating agencies, Moody’s and Scope. With its conservative financing strategy, CECONOMY AG pursues the objective of permanent status as an investment grade company.

The current ratings of CECONOMY AG:

Moody's Credit Opinion: PDF 118 KB, PDF 1,27 MB
Scope Rating Action: PDF 1,86 KB

As of 24 June 2021


Status: 31.03.2021

Financing programs

Issues on the debt capital markets serve the medium- and long-term financing of CECONOMY AG. Thus, multiple promissory notes (Schuldscheindarlehen) with a total volume of €250 million were successfully issued in March 2017 with terms of five, seven and ten years.

A Euro Commercial Paper Programme with a maximum volume of €500 million is available to CECONOMY AG for short-term funding needs.

Download ECP Programme Information Memorandum


Liquidity reserve

CECONOMY AG possesses comfortable liquidity reserves consisting of various syndicated revolving credit facilities, which complement the reserves held in cash and other liquid assets. In order to strengthen its liquidity reserves in the light of the COVID-19 pandemic, CECONOMY AG has increased the letter one by €1.7 billion to a new overall volume of €2.7 billion on 12 May 2021. The additional volume is provided by the state-owned bank KfW and a consortium of CECONOMY’s partner banks.

On May 6, 2021, CECONOMY AG signed a new syndicated loan agreement to secure the company's long-term liquidity for the period after the termination of the current credit line with the participation of KfW. The new syndicated loan agreement has a total volume of EUR 1.06 billion and an initial term of 3 respectively 5 years, each with two one-year extension options. It also includes a pricing mechanism linked to the achievement of ESG objectives.

The early termination of the existing credit facility is at the sole discretion of CECONOMY AG and will only be effected if the pandemic situation suggests that this is reasonable according to prudent business judgement. The new syndicated revolving credit agreement can be implemented until the end of November. A later date is not possible, so the committed credit lines under the new syndicated revolving credit facility would expire. In this event, however, it is assumed that CECONOMY AG would then seek to extend the existing tranche with the involvement of KfW by another year on the basis of the market situation still being significantly impacted by COVID-19.


Overview of syndicated revolving credit facility under participation of KfW.

Press release of ESG-linked syndicated revolving credit facility.


Bond

CECONOMY AG has successfully priced an inaugural €500 million 5-year senior unsecured bond, thereby further enhancing its post-pandemic financing structure. The notes will mature in June 2026 and carry an annual fixed coupon of 1.75%. The net proceeds from the issuance of the notes will be used for general corporate purposes, including the refinancing of existing indebtedness.

Below you will find an overview of the key information:

Contact
Simon Printz
Simon Printz, CFA

Head of Group Financing
+49 211 5408-7243
simon.printz_at_ceconomy.de

send E-Mail

General Contact

Please direct general inquiries on financing topics to +49 211 5408-7245 or to creditor-relations_at_ceconomy.de.

Vorsicht! Sie nutzen einen alten Browser!
Bitte aktualisieren Sie Ihren Browser um diese Seite anzuzeigen.