Home Management Report Opportunities and Risk Report Assessment of Overall Risk

ASSESSMENT OF OVERALL RISK

The basis for evaluating overall risk is the risk management system that is regularly audited by management. Potential risks for the Group include factors beyond its control, such as the development of national and global economies, which Fresenius constantly monitors. Risks also include factors immediately within its control, such as operating risks, which the Company anticipates and reacts to appropriately, if necessary. Currently, there are no recognizable risks regarding future performance that appear to present a long-term and material threat to the assets and liabilities, financial position and results of operations of the Group. We have created organizational structures that include all the considerations needed to quickly alert us to emerging risk situations.

CORPORATE RATING

Fresenius’ credit quality is assessed and regularly reviewed by the two leading rating agencies Moody´s and Standard & Poor´s. The Standard & Poor´s overall rating for Fresenius SE is BB and the Moody´s rating is Ba2. In 2007, Standard & Poor´s changed the rating outlook from “negative” to “stable”. Moody’s revised its outlook from “stable” to “positive”. The agencies’ ratings for Fresenius are as follows:

RATING OF FRESENIUS SE
	Rating	Outlook
Standard & Poor´s	BB	stable
Moody´s	Ba2	positive

The rating agencies justify the current ratings and the improved outlook as a result of, among other factors, improved financial ratios and the successful integration of the Renal Care Group and HELIOS Kliniken acquisitions. Further, the rating decisions are based on the expectation that Fresenius can sustain its positive earnings trend and will continue to generate stable cash flows in future.