FRANKFURT: German payments firm Wirecard said late on Friday it had hired US investment bank Houlihan Lokey to develop a new financing strategy as Moody’s slashed the company’s rating to junk following the disappearance of $2.1 billion.
The scandal-hit company is desperately seeking to reassure investors after its search for the missing cash hit a dead end in the Philippines, prompting ratings agencies to react. The company’s CEO quit on Friday.
“The downgrade of Wirecard’s ratings and review for further downgrade reflect the accounting irregularities and related implications on the company’s liquidity and financial profile following its failure to publish the already postponed audited consolidated accounts for 2019,” Moody’s said late on Friday.
The company’s postponement of the audited statements could trigger high and immediate refinancing needs, according to analysts who cover the company, prompting Wirecard to announce late on Friday that it had hired Houlihan Lokey to overhaul its financing strategy.
Neil Campling, an analyst at Mirabaud, said on Saturday “there is no update yet about either the missing $2.1 billion or the results of the discussions with the lending banks concerning credit lines.
“The deadline for audited results was June 19, yesterday, otherwise €2 billion of loans could be terminated.”
Dutch shareholder group VEB said on Friday it would seek compensation from the German firm’s accountants EY.
“EY has played a significant role in the whole Wirecard scandal, not only from its inability to detect the flaws in Wirecard’s escrow account in former years,” VEB said.
“Just when EY should have played a protective and clarifying role, it left the shareholders out in the cold,” it added.
A spokeswoman for EY in London said on Saturday that it had not received news of legal action by VEB and declined further comment.
VEB has said Wirecard’s former CEO told investors on May 3 that EY had reassured the company that they had no problem signing off on the 2019 audit. That wrong-footed the markets, leading shareholders to incur losses, according to VEB.
Wirecard seeks new financing strategy as Moody’s downgrades firm to junk
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Wirecard seeks new financing strategy as Moody’s downgrades firm to junk
- Company’s postponement of the audited statements could trigger high and immediate refinancing needs
- Search for the missing cash hit a dead end in the Philippines
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
