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SIX attacks, Standard & Poor's

One thing about the creators: you have ambitions. "Reshaping the credit Rating landscape" is the title of a brochure in which the stock market operator, SIX presents its newest offer. You start a rating Agency, SIX Rating.

The Six places with the top dogs in the industry such as Standard & Poor's or Moody's. The US giants are key players in the financial market, because the rating agencies rate debt and the debtor how high the probability is, that a believer sees his money and the promised interest rate gets. Large investors such as insurance companies are allowed to buy bonds without a minimum of one of the great addresses has a rating of the securities.

key role in crisis

The rating firms have come in the Wake of the financial crisis in the criticism. Because they let the companies pay that rate. Furthermore, rating agencies are consulted prior to the outbreak of the crisis, banks in the process of building with mortgage-backed securities so that they received the highest possible Ratings. That should lure investors. As the U.S. housing market collapsed, throwing investors in the securities from the Depot. A Commission of experts of the U.S. Congress, therefore, rejected the rating agencies a "key role" for the global financial crisis.

their dominance has not ended. According to the European securities and markets authority Esma the share of the Top three agencies in Europe is over 90 percent. However, Maneesh Wadhwa, chief of the SIX Rating says: "If we raise SIX Rating, there is the possibility that we can influence the rating landscape in a sustainable way."

This is the claim of the SIX derives from the fact that they produced their Ratings differently than the competition. In the case of the established providers of financial experts to analyze the balance sheets and analysts to interview the top management, in order to make a picture of the prospects for the future. Both elements are then incorporated into the Note to the debtor's quality.

"We want to be the first to cover both aspects with an automated solution," explains Wadhwa. That is, The systems of the SIX business automated analyze reports and statistics. "And for the qualitative assessments, the System analyzes all the public Statements of business leaders, according to the credit rating of relevance."

Cheap and fast

The automated Rating of the SIX developed together with the Start-up Value 3, the stock exchange operator also is involved. The new System should offer two advantages: The Ratings are intended to be significantly cheaper than those of the competition. And faster. "A classic credit rating Agency needs around four Wochenfür a new Rating," says the chief of the SIX Rating, "We can do it in less than a week."

Also in the case of the payment of SIX Rating goes the other way because the users, i.e., investors and banks, to the Issuer for the service, pay, not, as in the case of the large US players in the case.

the range of SIX is aimed less at large corporations such as Roche and Swiss Re. This will continue to be bound to order your Ratings in the major addresses to large international may, investors are buying the papers.

SIX Rating seeks after own statements "in the medium term," a Finma recognition.

A gap in the market there are, however, in the case of small and medium-sized issuers in Switzerland. "For Swiss bonds, there are only a few addresses, the grade title, it is the Fedafin, Bank analysts, and we are," said Rene Hermann, a Partner of the Swiss rating Agency and Independent Credit View. The appearance of the SIX would revive the market, "we salute".

But there's more behind the new rating offer: Ultimately, the aim is to revive the total bonds trading in Switzerland. "There are more listed bonds, is flourishing, the business of SIX, as well as the trade with the banks," explains Hermann. And the banks are the owners of the SIX.

Especially in the case of smaller companies, especially banks currently create the bond ratings. However, the regulators are seen increasingly critical. The EU has notified the securities and exchange Commission this year, four Scandinavian banks, because they were created without any approval Ratings for customers. In Switzerland, the rules are even looser, as a full service provider of Finma to recognise, it is not required to do so.

SIX Rating seeks after own statements "in the medium term," a Finma recognition. But first of all, you must find paying customers for the new Service.

A self-runner yet. So a sample of banks shows a mixed picture. A well-known Zurich-based Bank says that you do not see the need for a new provider. And the Bernese Valiant said: "The new provider needs to establish itself first." The intended "transformation" of the credit rating landscape, she seems to be so far.

Created: 08.11.2019, 22:36 PM

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