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


Our unsolicited credit rating of Coface S.A. (hereinafter, Coface) A / under observation is based on the company's outstanding efficiency, exceeding its peers, in addition to its leading position in the credit insurance market and its solid capitalization, which has been continuously improved in recent years. We highlight the insurance company's flexibility to adapt to changing conditions in the macroeconomic and sector environment, its remarkable profitability and limited financial leverage. In addition, our rating also considers the integration of ESG principles into its activity, as well as its internal organization structure. Conversely, our credit rating is limited by the low diversification of income by product - which is primarily concentrated in credit insurance -, the higher risk appetite of its investment profile compared to its peers, and the greater weight of its business in emerging markets despite its geographical diversification, in addition to the difficult economic environment from which we expect to see a greater impact on corporate delinquency.


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