Trade credit insurer outlines plans to take on the big three of Fitch, Moody's and Standard & Poors

Coface has outlined its battleplan to take on the big American rating agencies with its own version, having filed for accreditation with the European authorities on July 13.

Coface filed the request with the CESR (Committee of European Securities Regulators) as a rating agency specialising in corporates, for its 10 rating agencies in Europe.

The CESR will validate the request and send it to the relevant local authorities in the countries for which Coface is requesting accreditation (France, Germany, United Kingdom, Italy, Spain, Portugal, Belgium, the Netherlands, Poland and the Czech Republic) who will then process an application. The results should be known within 6 months after filing.

Jérôme Cazes chief executive of Coface, said: “Coface has been working on this project for nearly 10 years and the expertise of credit insurers in ratings has been recently recognised by the Governor of Banque de France, Christian Noyer.

"One of the main objectives of the new European regulation for ratings was to increase competition, and facilitate the development of new players, with a different business model."

The accreditation will allow Coface's ratings to be recognised by investors as credit ratings, in terms of the European regulation.

All existing rating agencies, including the three global players on the market - Fitch, Moody's and Standard & Poors - have to file before the September 7, to obtain the same official European recognition.

Xavier Denecker, managing director of Coface – UK & Ireland said: "Coface's intention to be licensed as a credit rating agency for its scores on corporate firms is good news for British industries and banks which have risks on big companies in the UK and in 9 other EU countries where over 40% of British exports are concentrated.

"They will be able to access the probability of default calculated by Coface according to an EU compliant methodology. It is also good news for Coface policyholders in the UK, who can access Coface's ratings through the online policy management tool Cofanet."