S&P downgrades Netherlands to AA+

Just couple of days after world's largest credit rating agency announced its fascination towards another Indian, Netherlands' credit rating was downgraded.  Company has announced to degrade country to AA+ band after a continuation of slowdown in the country.

Couple of days before S&P has announced its new boss, Indian origin Neeraj Sahai.  Last time Indian origin Devan Sharma made news when he downgraded USA.  Unfortunately only three weeks after the decision he left S&P.  Although company gave justification regarding the designation, truth may be something else far from the covered area.

As per S&P Netherlands' growth forecast and prospects are weaker than anticipated by agency prior.  Moreover GDP per capita growth is also lower than its peers of the same group.  Post this downgrade only Germany, Luxembourg and Finland are the only one with Gold class ratings.  Out of 17 member Euro Zone,  this number looks quite detrimental for future of the block. 

In a separate announcement agency has also raised the outlook for Spain's debt to Stable from negative.  This was the effect of economic growth in the country being gradually resumed.

The important aspect is to see Mr. Sahai's fortune in S&P in the light of these all consequences along with the lawsuit company is facing from US Dept of Justice.    

Sopra Expanding Wings in German market

Sopra Banking Software, a wholly owned subsidiary of France based IT multinational, Sopra group has announced to buy 100% stake of COR&FJA Banking Solutions  GmbH.

The COR&FGA AG is a German based consultancy companies for Banking and Financial Services companies and Company pension scheme provider.  Apart from technical support and consultancy services, COR&FGA also provides high performance software products. Company's Banking Solutions covers all functionalities across retail and private banks' financial needs apart from services and software for automotive and mortgage finance institutions.  GmbH generated revenue of €23.3 million during financial year 2012.

Sopra group is a leader in consultancy services and financial solutions across Europe.  Sopra Banking Software follows the legendary path of parent company.  It is the preferred solution for over 500 customers across 70 countries.  Company's all seven products are highly preferred and deemed to be industry standard.

The proposed transaction values €13 million and will be paid in cash.  The transaction has been approved by Board of Directors.  It is expected to be as per Sopra Group's strategy for 2015 - 30% of group's revenue from software development.  The offer is based on locally developed products ideally suited for German market.  This acquisition is expected to increase client base for Sopra Financial Solutions and enhance the quality and services offered under GmbH and add value and innovation in existing product offerings.