DBRS is opening a new office in Frankfurt alongside its established London European base in a move aimed at strengthening its presence in Europe, citing “significant momentum” in core European markets, against the backdrop of Brexit.

The new office will be DBRS’s second in Europe. The rating agency said the establishment of an additional legal entity, DBRS Ratings GmbH, marks an expansion and, upon registration with the European Securities & Markets Authority (ESMA), will also ensure ongoing compliance with applicable regulation in the EU and the UK post-Brexit.

“The fact that Frankfurt is located in the heart of Europe, offers good infrastructure and has great communication links to other locations in the continent helped our decision on DBRS’s second location in Europe,” said Detlef Scholz, head of Europe at DBRS and managing director of DBRS Ratings GmbH.

A DBRS spokesperson told The CBR that Brexit was a factor in the timing of the move, but not its main motivation.

“Prior to the UK’s Brexit decision, we already contemplated the opening of additional office locations in continental Europe, including southern Europe,” he said. “While the timing factors in the Brexit timetable, our key business motivation is to serve our growing customer base and to respond to markets’ needs in continental Europe.”

DBRS Ratings GmbH has already hired its first non-executive employee and is reviewing job applications for a range of open positions in analytical areas, the rating agency said.

“Like London, DBRS rating coverage out of Frankfurt will ultimately include the analysis of banks, covered bonds, securitisations and corporate funding structures,” it added.

DBRS rates covered bonds in four European markets: Spain, Italy, Portugal and Ireland.

It does not yet rate any German Pfandbriefe, but has assigned a AAA rating to a structured conditional pass-through covered bond from Deutsche Bank, issued last year. It also published a first Legal & Structuring Framework (LSF) assessment for Germany in 2016 and has said it is targeting growth in northern Europe.

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