Fitch Ratings-London/Paris-18 November 2010: Fitch Ratings has upgraded the major insurance entities of the Coface group's (Coface) Insurer Financial Strength (IFS) ratings to 'AA-' from 'A+'. The Long-term Issuer Default Rating (IDR) of Coface S.A., the most important insurance entity of Coface, is affirmed at 'A+'. The agency has also affirmed Coface S.A.'s and Coface Kreditversicherung AG's, the German insurance subsidiary of Coface, Short-term IFS ratings at 'F1+'. The Outlooks on the IFS ratings and IDRs are Stable. All the entities and their ratings are listed below.

The return to a standard notching between Coface's IFS ratings and IDRs reflects the improvement in the company's standalone risk and financial profile over the first nine months of 2010. During this period, the group's technical results have benefited from the extensive measures taken by the group since 2008 in response to the economic crisis, including reduction of its most sensitive exposures, tariff increases, and tightening of policies' terms and conditions. As a result, Coface's loss ratio decreased to 58% at end-September 2010 from 109% at end-September 2009 and 98% at end-2009. In addition, Coface's net result was EUR60m at end-September 2009 compared with a loss of EUR163m for the full-year 2009.

The Stable Outlook reflects Fitch's expectation that a change in the future ownership of Coface in the short term is less likely. Fitch sees Coface as having limited strategic importance for its 100% shareholder Natixis ('A+'/Stable/'F1+') although it considers that further support would be provided to Coface should the need arise.

Fitch expects the positive trend in Coface's profitability to continue in Q410 and that the group's underwriting performance will be less dependent on the economic cycle in the short term as policies' terms and conditions have now been tightened to reduce exposure and establish a better link between the risk assumed and its pricing.

Coface's ratings continue to reflect its solid business position in the international credit insurance industry and the high quality of its management team, which has pursued a consistent strategy. In addition, Fitch considers the group's capital adequacy to be strong on a risk-adjusted basis. At end-March 2010, its capital base was almost 5x the regulatory minimum requirement.

Coface is the third-largest international credit insurer, with an estimated 20% global market share and gross written premiums of EUR952m at end-September 2010. It holds strong positions in Europe, built both through acquisitions and organic growth. The group's competitive advantages are its strong franchise, consistent strategy and IT systems that facilitate streamlined underwriting under strict guidelines. Coface also has a strong standing in the complementary businesses of credit information, factoring and debt collection, all of which are core activities of the group. Coface is also the leading provider of credit information in France.

The full list of entities and their ratings is as follows:

Coface S.A.:

IFS upgraded to 'AA-' from 'A+'; Outlook Stable

Long-term IDR affirmed at 'A+'; Outlook revised to Stable from Evolving

Short-term IFS affirmed at 'F1+'

Coface Kreditversicherung AG:

IFS upgraded to 'AA-' from 'A+'; Outlook Stable

Short-term IFS affirmed at 'F1+'

Coface Assicurazioni Spa:

IFS upgraded to 'AA-' from 'A+'; Outlook Stable

Coface Austria Kreditversicherung AG:

IFS upgraded to 'AA-' from 'A+'; Outlook Stable

Coface North America Insurance Company:

IFS upgraded to 'AA-' from 'A+'; Outlook Stable

Coface Finanz GmbH:

Long-term IDR affirmed at 'A+'; Outlook revised to Stable from Evolving

Coface Deutschland AG:

Long-term IDR affirmed at 'A+'; Outlook revised to Stable from Evolving