Rating agencies fear a clampdown on their work in Germany following an investigation by BaFin, the country's financial regulator. The inquiry into Scope, one of the country's fastest-growing rating agencies, is part of the crisis facing Germany's real estate funds industry.

BaFin said it would examine sell recommendations made in December by Scope on two retail property funds worth €3.7bn ($4.4bn) managed by KanAm, a German property fund manager.