Coface downgrades European business credit ratings

1/16/2012 12:40:01 PM

International credit insurer Coface has downgraded the business credit risk of a number of European countries meaning that there is an increased risk of debtor defaults from the EuroZone. However, it noted that South Africa's credit rating of A3 negative watch has remained constant at this level since 2008, indicating relative stability in the local economy compared to Europe and other emerging economies. Despite the strong Swiss franc, Coface has downgraded that country's debtor risk rating from A1 to A1 negative watch. France has been downgraded from A2 to A2 negative watch, Spain A3 to A4 and Italy A3 to A4. A number of other countries were downgraded. Egypt was downgraded from B negative watch to C, Nigeria to D, and a number of emerging European countries downgraded which included Croatia, Hungary, Slovenia and Slovakia.

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