OREANDA-NEWS. Fitch Ratings has assigned Coface Re SA (Coface Re) an Insurer Financial Strength (IFS) Rating of 'A+'. The Outlook is Stable.

The company, domiciled in Switzerland, is 100% owned by Coface SA (Issuer Default Rating: A/Stable), the group's top holding company. As a group, Coface is the third-largest credit insurer globally with an estimated 16% credit insurance market share in 2013. At end-December 2014, Coface reported gross written premiums (GWP) of EUR1.2bn.

KEY RATING DRIVERS

The rating relies on the company's core status within the Coface group as it exists solely to accept internal reinsurance from Coface group members. Coface Re is fully integrated within and fully reliant on the Coface group for its strategic direction, management, underwriting policy and resources management.

As there is no evidence that policyholders would be given priority in the liquidation of a Swiss reinsurance company, the IFS rating of Coface Re is aligned with the Issuer Default Rating of Compagnie francaise d'assurance pour le commerce exterieur, the group's largest operating entity.

Coface Re has no operating track record outside its accepted business from the Coface group. However, because the Coface group is a seasoned credit insurer, Coface Re is not viewed by Fitch as a start-up company. In addition, Coface Re does not bring any additional underwriting risk to the group as the group external reinsurance policy remains unchanged.

The Stable Outlook is in line with that of Compagnie francaise d'assurance pour le commerce exterieur.

RATING SENSITIVITIES

Changes to Compagnie francaise d'assurance pour le commerce exterieur's rating would likely be reflected in Coface Re's rating.

A downgrade could result from a diminishing of Coface Re's strategic importance to the Coface group or from a material deterioration in Coface Re's financial profile.