Outlook: Observation
Action date: 07/06/2020
Rating action: New


The credit rating of Euler Hermes S.A. (hereinafter, Euler Hermes), the insurance division of the Euler Hermes Group, of AA- with an outlook under observation, is based on the solid profitability shown by the Company through-the-cycle, in addition to its high efficiency and a strong combined ratio that reflects the efficient management of claims, being especially noteworthy its solid level of capitalization built on a high quality capital base. In addition, we highlight the leading position in the global credit insurance market -as part of Allianz, one of the insurance groups with the highest premium income in the world-, as well as its low financial leverage and well-defined risk management based on a conservative investment portfolio focused on assets with high credit quality, liquidity and geographical and industry diversification. On the contrary, our credit rating is constrained by limited income diversification with a strong exposure to trade credit insurance, a significant situation in a macroeconomic environment with high uncertainty and a business activity seriously affected by the social distancing measures implemented in the main markets where it operates.


Date last rating: 07/06/2020
Date first rating: 07/06/2020