The rating agency Moody’s Investors Service has given DWS Group a Long-Term Issuer Rating of A2, outlook stable. This is a strong result, also within the asset management sector. The trigger for applying for the rating was the business with institutional insurance clients.
With a rating, DWS would like to enable clients from the German insurance industry to collateralise their insurance contracts more capital-efficiently. Therefore, DWS Group has decided to seek a Long-Term Issuer Rating from Moody’s, one of the world's leading rating agencies.
If necessary, the rating can also be used for the company's own funding in the future. Even though there are currently no concrete plans to raise debt capital, this is a further step towards DWS' independence. The rating supports DWS in securing and diversifying its funding options and thus increases its flexibility at the same time.
Moody’s commented:
“DWS’s A2 issuer rating reflects its leading position in its domestic market, its global geographic footprint, along with robust financial flexibility, which is supported by very low leverage and strong liquidity.”
“DWS’s business diversification is a key credit strength underpinning the company’s credit profile. The company’s product mix along with its geographic and client diversification support revenue stability, even at times of market volatility.”
“DWS’s financial flexibility is strong, …”
“The stable outlook reflects Moody’s expectation that DWS will maintain its strong market position in its selected segments and will pursue opportunities to grow in selective areas, while managing its expense base in a disciplined manner.”
Read the full Moody’s media release here.
