Moody’s puts Coface under ratings review

MOODY’S has placed the Aa3 financial strength ratings of Coface and Coface Kreditversicherung AG under review for possible downgrade. The review has been triggered by Moody’s recent downgrade of parent group Natixis and of Natixis’ parents, Caisse Nationale des Caisses d’Epargne and Banque Federale des Banques Populaires, as well as the ongoing pressure on the credit insurance industry, which increases the potential downside risk for Coface in relation to profitability and capital. Negative rating action is likely if the review concludes Natixis’ weakening standalone credit profile implied a reduced ability to support Coface in the future. An expected sustained deterioration of Coface’s standalone profile could also lead to a ratings downgrade. Moody’s expects to conclude its review within the next three months.