Rating does not protect against deception

Deutsche Konsum REIT-AG is not only causing concern for the financial regulatory authority but also for a rating agency. The Berlin-based rating agency Scope Ratings had praised the company’s creditworthiness with good ratings. However, these historical ratings must now be reviewed because the German Federal Financial Supervisory Authority (BaFin) has determined that the individual financial statements of Deutsche Konsum REIT-AG, prepared in accordance with international accounting standards as of September 30, 2021, are flawed. Following the “garbage in, garbage out” principle, there is a concern that the analysts at the rating agency may also have based their calculations on incorrect figures.

In any case, Deutsche Konsum REIT-AG has already deactivated the link to the ratings: https://www.deutsche-konsum.de/investor-relations/rating now leads to a “404 Page Not Found” error. As recently as spring 2023, Scope Ratings publicly stated: “Scope affirms BB+/Stable issuer rating of Deutsche Konsum REIT-AG.”

Errors in IFRS Individual Financial Statements Identified by BaFin