Fitch confirms Coface AA- rating

The rating agency Fitch, on 23 November 2022, affirmed Coface AA- Insurer Financial Strength (IFS) rating. The outlook remains stable. Fitch has also affirmed Coface SA's Long-Term Issuer Default Rating (IDR) at 'A+', with a stable outlook.

The rating action reflects “Coface’s very strong company profile and capitalization, as well as a strong profitability through the cycle”. The stable outlook reflects Fitch’s view that “Coface continues to maintain sufficient rating headroom to weather rising corporate default risk in the current recessionary economic environment”.

In Fitch’s press release, the agency rating recognizes Coface’s “very strong, well established and diversified franchise in the global trade credit insurance sector”. Fitch highlights also that “inflation is supportive of the company’s growth in revenues, which are based on client’s turnover and therefore largely linked to inflation”.

Fitch views Coface’s financial performance “as strong across the economic cycle, underpinned by underwriting profitability and effective risk management and reinsurance”.