Fitch raises the outlook for Coface’s ratings to “stable”
The rating agency Fitch, on 20th April 2021, affirmed Coface AA- Insurer Financial Strength (IFS) rating. The agency also removed the Rating Watch Negative. The outlook is now stable.
The AA- IFS ratings of Compagnie Française d’Assurance pour le Commerce Extérieur SA and Coface North America Insurance Company have been affirmed with a stable outlook.
The Stable Outlook indicates the agency's expectations that “Coface will be able to withstand an increase in corporate insolvencies, as government support is scaled back in the next 12-24 months as the global economy recovers”.
In Fitch’s press release, the rating agency highlights that “Coface’s business profile has remained stable through the crisis, benefitting from its strong franchise in the global trade credit insurance sector” and that “the company was able to reduce and rebalance its insured risk exposure, while increasing new business and client retention rates to
Fitch views Coface’s financial performance “as strong across the cycle, underpinned by underwriting profitability and effective risk management” and its capitalization “as strong and unchanged through the pandemic”.
Carine Pichon, Chief Finance & Risk Officer, commented:
“This affirmation of our ratings with a stable outlook is a key milestone for us as now all our ratings have a stable outlook, returning to a situation that was prevailing before the financial crisis. It comes as a testimony of the hard work done by all Coface teams in this very unique situation.”