Deutsche Forfait (“DFAG”) announced on 23 January 2015 that the required quorum (participation of bondholders) of at least 50% of the outstanding bonds which has been a prerequisite for the execution of the proposed restructuring of the EUR 30m senior unsecured corporate bond (7.785% p.a., maturing 27 May 2020) has not been reached at the first bondholders’ meeting held from 20 to 22 January 2015. As a result, DFAG will schedule a second bondholders’ meeting in mid-February.

DFAG has proposed a bond restructuring for the outstanding corporate bond at the following terms:

- The restructuring includes a proposed interest-rate reduction on the bond from 7.785% p.a. to 2.0% p.a. retroactively from May 2014 until the bond’s maturity on 27 May 2020.

- In addition, bondholders will be granted call options to acquire shares in the company with an exercise price of EUR 1.25 between 27 May 2016 and 27 May 2020 (100-113 new shares for each bond with a nominal value of EUR 1,000) as compensation for the reduced interest payments.

Scope Ratings’ credit rating of CCC will remain under review for a negative rating action until the resolution of the bondholder meeting, or any earlier event impacting the rating. Dependent on the outcome of the bondholders’ meeting, Scope might affirm or downgrade the rating, including a downgrade to selective default (“SD”).

This commentary replaces Scope’s monitoring note issued on 23 January 2015.

REGULATORY DISCLOSURES

Important information

Information pursuant to Regulation (EC) No 1060/2009 on credit rating agencies, as amended by Regulations (EU) No. 513/2011 and (EU) No. 462/2013

Responsibility
The party responsible for the dissemination of the financial analysis is Scope Ratings AG, Berlin, District Court for Berlin (Charlottenburg) HRB 161306 B, Chief Executive Officer: Torsten Hinrichs.

The rating analysis has been prepared by Sebastian Zank, Lead Analyst
Responsible for approving the rating: Dr. Britta Holt, Committee Chair

Rating history
01.12.2014 CCC under review for possible downgrade
17.10.2014 CCC under review with a developing outcome
21.07.2014 CCC under review for possible downgrade
26.03.2014 B- under review for possible downgrade
14.02.2014 BB+ under review for possible downgrade
02.05.2013 BB+ outlook Positive

Information on interests and conflicts of interest
The rating was prepared independently by Scope Ratings but for a fee based on a mandate of the rated entity.
As at the time of the analysis, neither Scope Ratings AG nor companies affiliated with it hold any interests in the rated entity or in companies directly or indirectly affiliated to it. Likewise, neither the rated entity nor companies directly or indirectly affiliated with it hold any interests in Scope Ratings AG or any companies affiliated to it. Neither the rating agency, the rating analysts who participated in this rating, nor any other persons who participated in the provision of the rating and/or its approval hold, either directly or indirectly, any shares in the rated entity or in third parties affiliated to it. Notwithstanding this, it is permitted for the above-mentioned persons to hold interests through shares in diversified undertakings for collective investment, including managed funds such as pension funds or life insurance companies, pursuant to EU Rating Regulation (EC) No 1060/2009. Neither Scope Ratings nor companies affiliated with it are involved in the brokering or distribution of capital investment products. In principle, there is a possibility that family relationships may exist between the personnel of Scope Ratings and that of the rated entity. However, no persons for whom a conflict of interests could exist due to family relationships or other close relationships will participate in the preparation or approval of a rating.

Methodology
The methodology applicable for this Corporate Rating is available on www.scoperatings.com. The historical default rates of Scope Ratings can be viewed on the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s default rating, definitions of rating notations and further information on the analysis components of a rating can be found in the documents on methodologies on the rating agency’s website.
 
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