SLG Financial Strategy, Rating and Loan Agreements 2023 - Vienna | Schwabe, Ley & Greiner | 9 October 2023 | Vienna

The way to the right financial strategy leads through the issue of creditworthiness. It is the central control variable in all financial strategy considerations and influences not only the conditions but also the financing options and contract content. For example, certain financing instruments are reserved for companies with a good credit rating. But the structure of the financing contract is also dependent on the creditworthiness of the borrower.

This seminar deals with basic questions about financial strategy, creditworthiness and rating, but also current issues such as the situation on the financing market, creditworthiness-related loan agreement clauses or third-party comparable intercompany interest rates.

Main topics:
Financial strategy
• content of regulations
• Examples of listed companies

Creditworthiness and rating
• What rating levels are there?
• What do investment grade and non-investment grade mean?
• How do ratings from banks and rating agencies differ?
• How can credit default swaps (CDS) be used to indicate creditworthiness?
• What role does the liquidity reserve play in the rating?
• Which quantitative models can be used for the credit rating?
• What role do qualitative factors play?
• Which credit rating is used?
• Where is the best credit rating for a company?

Financing instruments
• What types of bank loans are relevant for companies?
• What are the advantages and disadvantages of promissory note loans and hybrid capital instruments?
• Bilateral credit vs. syndicated loan: which type of contract is more suitable for which situation?

Financing Conditions
• What does the current market environment look like?

Transfer prices and intercompany interest
• What does the OECD's “Base Erosion and Profit Shifting” (BEPS) initiative say?
• How can third-party comparable intercompany interest rates be determined according to the "at arm's length" principle?

Loan Agreement Documentation
• What role does creditworthiness play in drafting a loan agreement?
• Which typical contract components do loan agreements contain and what should be considered?
• What design options are there for critical loan agreement clauses?

2023 Speakers

Dr. Edith Leitner
Partner, Schwabe, Ley & Greiner