Wirecard seeks new financing strategy after Moody’s junk downgrade



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Wirecard seeks new financing strategy after Moody’s junk downgrade

Wirecard, the fiscally embattled German payments firm, which had been facing off a slew of slanderous criticisms after reveal of a roughly €2 billion worth of fresh assets missing from its balance sheet, said on Saturday that the German payment processor, which had been the Europe’s second-largest payment firm in terms of market cap before an en-masse sell-off wave of Thursday and Friday that saw nearly 71 per cent of its market valuation whacking away, had hired a US-based investment bank Houlihan Lokey in order to instrument a new fund-raising strategy.

On top of that, latest statement from Wirecard AG was brought into light hours after the New York-based credit rating agency Moody’s had slashed the company’s rating into a junk territory citing the disappearance of €2 billion, which bankers in Philippines said yesterday had never existed.

Wirecard desperately in search of a financial lifeline

Apart from that, according to Wirecard officials familiar with the matter, followed by the resignation of the scandal-hit payment processing firm’s Chief Executive on Friday, the same day a number of creditors had terminated a roughly €2 billion debt deals with the company citing the missing amount from its 2019 balance sheet, Wirecard AG has been desperately seeking for a bailout package in order to reassure its investors, though analysts said the Wirecard AG would likely to face off legal charges alongside further glooms in shares’ prices given the extent of defamation the company had brought upon the securities’ overseers in Frankfurt.

Aside from that, while Wirecard AG had been counting its days of simmering on the lookout of a potential creditor to overshadow its latest scandal, as beforementioned, downgrading the company’s rating into a junk status, Moody’s said late on Friday, “The downgrade of Wirecard’s ratings and review for further downgrade reflect the accounting irregularities and related implications on the company’s liquidity and financial profile following its failure to publish the already postponed audited consolidated accounts for 2019.