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
https://arab.news/gsw3d
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
Saudi Export-Import Bank signs reinsurance agreement with the German Export Credit Agency
RIYADH: The Saudi Export-Import Bank has signed a reinsurance agreement with Germany’s official Export Credit Agency, managed by Euler Hermes Aktiengesellschaft, with the aim of enhancing credit risk insurance coverage to meet the needs of local exporters of capital goods and production inputs from the Federal Republic of Germany.
This agreement is part of the bank’s efforts to strengthen partnerships with international export credit agencies, ensuring the safe and sustainable flow of essential raw materials and capital goods, and enhancing the efficiency of export activities by local enterprises, according to the Saudi Press Agency.
The agreement was signed by Saad bin Abdulaziz Al-Khalb, CEO of the Saudi Export-Import Bank, and Edna Schone, board member of Euler Hermes Aktiengesellschaft and head of its Export Credit Agency.
Al-Khalb stated that the reinsurance agreement with ECA represents an important step in expanding credit risk management tools and enabling local exporters to obtain the production inputs and capital goods necessary to grow their businesses with greater confidence.
He noted that cooperation with international export credit agencies reflects the bank’s commitment to developing advanced insurance solutions that contribute to the growth of the Kingdom’s foreign trade, as part of its pivotal role in strengthening the non-oil national economy.
Through this agreement, the Saudi Export-Import Bank continues to support the growth of Saudi non-oil exports and expand its network of international partnerships, in alignment with the goals of Vision 2030 to diversify the national economy and enhance the Kingdom’s position in global trade.
