Concern-induced downrating

A corporate headquarters distributes losses incurred to all group companies, including those which, as independent companies, do not directly belong to the allocation group (payroll subunit). The resulting unfavorable balance sheet structure of the burdened companies leads to banks charging them higher interest rates or holding back on granting loans to the respective company. As a result, the comparatively independent group companies suffer losses in their profitability, and they are often ultimately forced into complete dependence on the group headquarters. – See cash pooling.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/