Grenke AG, a European provider of leasing for SMEs, has reported the latest rating action by Standard & Poor’s in which S&P Global Ratings affirmed Grenke AG’s “BBB+/A-2” long- and short-term issuer credit ratings and kept the outlook for the long-term rating at “negative”.
As the rationale behind this rating, S&P acknowledged Grenke AG’s profitability and stable liquidity despite the current tense market situation.
Standard & Poor’s
The agency expects Grenke to continue to show solid performance and resilience. Dr Sebastian Hirsch, chief financial officer of Grenke AG, said: “The affirmation of the investment-grade rating gives us stability and a solid perspective. We have shown that we can be very profitable, even in challenging times. This is and remains one of the strengths of our business model.”
The latest S&P report can be downloaded from the following link: https://www.grenke.com/investor-relations/debt-capital
In early July, Grenke AG announced that it had generated business growth of €398.6m in Q2 2021, marginally below the level achieved in the previous year (Q2 2020: €402.3m).
The number of new contracts increased in Q2 2021 by 11.3% to 56,078, which was the first year-on-year increase since the outbreak of the Covid-19 pandemic.
The contribution margin 2 of the new leasing business also increased from 17.5% in the same prior-year quarter to 18.1% in the reporting quarter. The new leasing business is defined as the total acquisition cost of all newly purchased leased assets.