Track: 4 Title: Innovations in the credit chain Speaker: Fritz Witt – June 25 th 2009.

Track: 4 Title: Innovations in the credit chainSpeaker: Fritz Witt – June 25th 2009

Speech on behalf of Datev and URA Rating Agency®

The URA Rating Agency is convinced that the accountant will be the most importantplayer within the rating industry in the near future. Because only an independent andneutral intermediary such as an accountant is able to deliver the quality of the data that banks and CAI’s (credit assessment institutions) need to produce a reliablerating within a transparent rating process.

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

InvestmentLending,Regulation

Processes

Participants

AuditorsTradingPartners

BanksFinancialPublishersand CAI’s

Regulators

Software Vendors

ManagementAccountants

Companies

Economic Policymaking

XBRLXBRLXBRL XBRL

CentralBanks

4

Source DNB

Company

Banks

PR internal external

Management

Buyers

Suppliers

Capital market

Information Insurance

Credit conditions

PurchasingParticipations

intangible assets working capital

Access capital market and private equity

Risk and performance management

Marketing purposes

Asset management

Credit scoring

Supplier ratings Buyers cooperative

The influence of Basel II on companies

AccountantClient BankValue chain

Client Bank

AccountantClient BankValue chain

AccountantClient BankIntermediaryValue chain

Credit applications against lowest costs integrated with the front offices of the

banks (term sheets execution etc.)

Bank

Intermediary or accountant

Alternatives:

•Grants

•Private Equity

• Mezzanine

Mediation:

• Other kind of loan

• Other bank

• Risk PD / LGD

• Monitoring

• Credit advice

Accountant

Client URA Rating factory

Value chainFinancial advisor

Bank

assessed XBRL reports

unassessed XBRL raports

Summarizing:◦ Together with local players Datev /URA is able to reduce

considerable regulatory burden and processing cost.◦ Improvement of the quality of the data by means of

several assessment techniques like: Data level assessments Process controlls Quality level agreements of the XBRL reports Reference ratings according to world class standards

Fritz Witt CRA

E-mail: [email protected]

Phone: +31 (0)10 - 2489680