Credit rating agency Scope has taken over Euler Hermes Rating, a division of Allianz’s credit insurance arm Euler Hermes, for an undisclosed sum.
Euler Hermes Rating has renamed as Scope Hamburg following the takeover. It was founded in 2001 in Hamburg as an independent rating agency for middle-sided firms.
Florian Schoeller, founder and chief executive office of Scope, said: “The acquisition of Euler Hermes Rating is another step towards consolidating the European ratings market and building a European rating heavyweight.”
Euler Hermes Rating assesses the risks that a company faces in sectors such as automotive, mechanical engineering, renewable energies and telecommunications, at a global or regional level.
It analyses mainly small and medium-sized firms (SME) and infrastructure project finance.
Scholler added: “Given its focus, Euler Hermes Rating is well positioned in segments with rising investor demand, and offers clear synergies with Scope Group.”
The credit rating agency targets debt investors that look at project finance and SMEs for alternative assets and yield, it said.
Founded in 2002, Scope has expanded its business over the last decade with the acquisition of PRS Ratings in 2012 and FERI EuroRating Services in 2016.
Scope is now preparing to exploit opportunities that will be offered by the European Capital Market Union (CMU).
“In this context, we offer investors and issuers a European perspective on both credit and ESG,” said Scope’s chief operating officer Guillaume Jolivet.
He added: “Our rating approaches and methodologies are based on a deep understanding of European realities. Euler Hermes Ratings’ team of analysts has a long-standing experience in rating European SMEs and in particular mid-cap companies, which perfectly complements our own credit rating expertise.”
The European Commission outlined last year a further action plan to complete the CMU. It adopted the first action plan in 2015.
With the new plan, the Commission aims to make financing accessible to companies to support a green, digital, inclusive and resilient economic recovery after the COVID-19 crisis, deepen the integration of national capital markets, and offer a space for long-term investments.