Trade credit insurer to restore faith in financial system
Coface is aiming to restore confidence in the battered financial system by launching it own credit ratings service.
The French-based company believes there is a gap in the market for a reliable service after the financial crisis left many rating agencies with damaged reputations. Rating agencies have been widely blamed for not downgrading toxic investments.
Coface will use its expertise in trade credit insurance, where it has to carefully check through the financial strength of companies before giving cover, to create the rating service.
The insurer already has built up company profiles through its trade credit business and analysts across the world. It is calling on new European regulation over credit agencies to be tougher.
Chief executive Jérôme Cazes said: “"Only performance control can make it impossible for a financial catastrophe, such as the AAA rating of toxic securitization vehicles, to be repeated – a AAA rating which announces a one-in-3,000 chance only of defaulting in the year, or an average life expectancy of 3,000 years."
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
