曾道人小神童:Frequently Asked Questions
SAP has a long-term issuer credit rating of ?A2“ by Moody’s (outlook stable) and ?A“ by Standard & Poor’s (outlook stable).
While SAP had continuously realized successful financing transactions at attractive terms before obtaining an external credit rating in September 2014, a rating now provides SAP with the opportunity to broaden its investor access, to issue further capital market instruments and to optimally benefit from its high creditworthiness. Furthermore, it provides investors, customers and suppliers with an independent view of SAP’s strength and stability as a business partner.
We apply a centralized financial management, i.e. financial resources should be raised and invested centrally whenever possible. Therefore, subsidiaries are financed by intercompany loans and/ or cash pooling agreements according to their needs.
For SAP, sufficient liquidity has highest priority. We are aware that an optimized capital structure with a higher financial leverage and lower cash levels might imply a slight reduction in the cost of capital. However, in the current environment a proper liquidity level with still moderate gross debt is more important to us. Moreover, our company operates in growth markets. Therefore continuous access to debt capital markets is essential in order to seize growth opportunities as they arise.
The bank relationship policy of SAP targets a long-term and mutually beneficial business relationship. Bank partners who support us with significant credit amounts make up our core bank group. Within this group we allocate treasury-related business on a competitive basis. Moreover, we take into account the respective core competencies and abilities of each individual bank.
Besides the credit ratings we also look into the development of the CDS spreads and the share price of the banks on a daily basis. Moreover, a counterparty limit has been assigned to each bank partner. We have defined a detailed contingency plan which stipulates specific measures to be undertaken in case of a sudden and significant deterioration in the creditworthiness of our bank partners.
We currently have a syndicated revolving credit facility in the amount of EUR 2.5bn and current maturity in November 2023 in place. The facility includes 20 banks and strengthens our financial flexibility. It can be used for general corporate purposes and supplements our existing bilateral credit facilities. The credit facility has not been drawn so far and currently we do not intend to do so.
To a very large extent we have concentrated our liquidity at SAP SE. It is distributed among a large number of counterparties and invested almost completely short-term. The liquidity reserve has a high priority for SAP. We have a daily overview of the group liquidity and follow a very conservative approach on the investment side by using only standard instruments and short maturities.