Creditreform Rating has confirmed the A+ unsolicited corporate issuer rating of SAP SE. The stable outlook remains in place.
With this unsolicited Corporate Issuer Rating , we confirm SAP SE as having a high level of creditworthiness and low default risk. The Company´s sustainable business model based on its market position, as well as its products, strategy, and innovative capacity have a favorable impact on the rating. The Corporation has expanded its business operations significantly and displays an appropriate capital structure and solid financial strength. The analysis of the Company´s financial figures shows them to have remained stable at a respectable level over several years, although the results in 2019 show a slight decline due to one-off effects. Although SAP has not been spared the impact of the COVID-19 pandemic, we do not currently see any fundamental threat to its financial stability; it is also likely that SAP will profit in the short to medium term from the megatrend of digitization accelerated by the pandemic.
Economic risks, political tensions, and the reluctance of customers to invest due to present and future circumstances regarding the pandemic, have a damping effect on the rating. Furthermore, we see significant pressure from international competition and from a fast-changing business sector which demands continuous innovation in the Company´s product portfolio. In this respect, the high-profit, expanding industry involves significant sector and business model risks.
Despite a decline in the Company´s 2019 figures, the one-year outlook for the rating remains stable. This is based on our assumption that SAP will, at the minimum, reach its business forecast for 2020, and that the global economic distortion due to the coronavirus will soften in the second half of 2020 and in 2021 as a whole.