Moody's confirms GCO's A3 rating with a stable outlook

"The confirmation of the rating awarded by the rating agency reflects the Group’s financial strength and the benefits derived from the diversification of its businesses."

Moody's has confirmed the long-term issuer rating of 'A3' (investment grade) with a stable outlook for GCO. The review was carried out by the entity's rating committee, which ratified the suitability of the rating in light of the applicable methodology and recent developments. The rating corresponds to GCO as a holding company, covering its two insurance companies (Atradius Crédito y Caución and Occident), and reflects the Group's solid financial position and the benefits it derives from the diversification of its businesses.

Moody's has highlighted that GCO's A3 rating is based on the financial strength and diversification of its two main operations: the credit insurance business, Atradius Crédito y Caución, whose main operating companies maintain an insurance financial strength rating of A1; and the traditional insurance business in Spain, concentrated under the Occident brand. As the entity stresses, both businesses have contributed in a balanced and sustained manner to the Group's overall results in recent years.

In this context, Moody's has highlighted Occident's solid credit profile, supported by its very good position in the Spanish market; its low risk profile, focused on individual customers and SMEs; its good diversification; its very solid capitalisation and its low asset risk profile. The agency notes that, although this profile is partially conditioned by Spain's sovereign rating (A3, stable outlook), Occident's capitalisation level gives it a higher resilience than the sovereign.

For its part, the global credit insurance business provides geographical diversification to the Group. This combination allows GCO to have well-diversified sources of cash flow and a solid credit profile.