News & Publications
03/31/2020
Corporate news, Corporate news, Financial news

COFACE SA: Fitch places Coface on Rating Watch Negative

Ratings agency Fitch has, on 31 March 2020 placed Coface on Rating Watch Negative. This includes Coface’s Insurer Financial Strength (IFS) rating.

The ratings agency estimates that the adverse effects of the coronavirus pandemic will have a negative impact on the trade credit insurance industry, and that it is now more likely that Coface’s profitability, as measured by Fitch, will reach a level no longer compatible with the current rating.

The agency recognises that Coface has a robust solvency, and a pricing and risk management capacity that will reduce the impact of the economic crisis on its claims experience. It also notes that during previous crises, credit insurance has demonstrated its resilience and experienced a rapid rebound in profitability.

As a reminder, at the end of 2019, Coface benefited from a solvency ratio of 190%, higher than its target area of 155% -175%. Furthermore, and very early in the crisis, Coface significantly reduced the risk of its investment portfolio, which is currently made up of 22% liquidity compared to around 7% at the end of 2019. The fall in the financial markets has therefore not caused a reduction in solvency greater than the sensitivities communicated by the group.

In this uncertain period, Coface is working more closely than ever with its customers, and is taking multiple preventive actions on its risk portfolio.

 

 

Download this press release : COFACE SA: Fitch places Coface on Rating Watch Negative (496.38 kB)

Contact


Diana OROS

Marketing and Communications Specialist 
42 Pipera St., 6th Floor - 020112
District 2 - Bucharest
ROMANIA
T: +40 37 467 08 86
Email: diana.oros@coface.com

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