Moody's upgrades GCO's rating to A3 with a stable outlook

"The new rating reflects the improvement in Spain's sovereign rating. "

Moody's has granted a long-term issuer rating of "A3" (investment grade) with a stable outlook to GCO, an upgrade from the "Baa1" (investment grade) rating with a positive outlook assigned last May. The rating corresponds to GCO as a holding company, covering both its two insurance companies (Atradius Crédito y Caución and Occident) and its funeral business (Mémora), reflecting the Group's solid financial position and the benefits it derives from business diversification.

The new GCO rating follows Moody's upgrade of Spain's sovereign rating. Specifically, the long-term issuer rating and unsecured debt rating assigned to the Spanish Government have also been upgraded to A3 from Baa1, with the outlook changing from positive to stable. The decision reflects the rating agency's view that Spain's economic strength is improving thanks to a more balanced growth model, progress in the labour market, and the strengthening of the banking sector, which increases economic resilience.

In this context, Moody's has highlighted the strength of Occident's credit profile due to its solid capitalisation and resilience to potential sovereign stress, as well as its strong position in the Spanish market and its low business risk profile, focused on individuals and SMEs. As for Atradius Crédito y Caución, the agency also valued its geographic diversification.