But reinsurance broker maintains B credit rating
Standard & Poor’s has confirmed Cooper Gay Swett & Crawford’s (CGSC) B credit rating but changed its outlook from stable to negative, warning of the firm’s challenging operating environment.
The ratings agency said its negative outlook on the reinsurance broker’s rating reflects a deterioration in its revenues and earnings relative to expectations.
S&P put the worse-than-expected performance down to challenges in CGSC’s Latin American and London reinsurance broking businesses.
Commenting on the rating, CGSC group chief executive Toby Esser said: “We are pleased with Standard and Poor’s decision to maintain CGSC’s credit rating despite the change of outlook to negative from stable.
“S&P has recognised the strong growth of our North America business, the positive momentum created into 2014 through the active measures we have taken and the recent exciting acquisitions we have made in the UK and Australia. It also highlighted some of the volatility we have seen in the international part of the group.
“CGSC retains strong liquidity and, alongside our supportive equity partners, significant investment firepower.”