S&P gives Groupama and its subsidiaries a boost
Standard & Poor's has placed its 'A' long-term counterparty credit and insurer financial strength rating on France-based insurer Groupama.
Groupama's core subsidiaries has also been placed on CreditWatch with positive implications, following its launch today of a minimum €500m perpetual, deeply subordinated debt issue.
"The CreditWatch placement reflects the positive trend that we have already recognized in revising the outlook to positive on April 6, 2007," said Standard & Poor's credit analyst Lotfi Elbarhdadi.
"This trend has continued, as demonstrated by Groupama's half-year earnings and as we understand after recent exchanges with management."
The current ratings reflect Groupama's improving operating performance, its leading competitive position in France, and its strong capitalization.
Partially offsetting these positive factors are still high, although declining, operating expenses, constraining the quality of earnings, and a significant reliance on earnings generated in the French non-life sector.
