Corona crisis and its consequences
At the moment, reliable forecasts of how the corona pandemic and the economy will affect the global, continental and national economies are hardly possible. The parameters are changing too fast. Nevertheless, the economists at Coface are of course also observing and analysing the development very precisely. This also applies to the credit assessors in operational business. On these pages we want to summarise information that is directly or indirectly related to Corona and our business.
COVID-19 swings the spotlight back onto emerging countries’debt
Even though their degree of vulnerability to this shock depends on many factors, the initial situation of their public finances is a key issue, as it determines their response capacity to the multitude of economic consequences of this crisis. However, their public debt was already at an all-time high in 2019. The massive capital outflows generated by this health crisis also remind us that many emerging economies continue to suffer from the “original sin”, i.e. the inability to issue bonds in local currency. Read more!
COVID-19 - heading towards a sudden global surge in business insolvencies
Coface forecasts that 2020 will see the global economy’s first recession since 2009, with a growth rate of -1.3% (after +2.5% in 2019). Coface also expects recessions in 68 countries (vs only 11 last year),world trade to fallby 4.3%this year (after a -0.4% drop in 2019),and a 25% worldwide increase in business failures (compared to our previous January forecast of +2%). Read more!
Coface Country Risk Conference 2020 is cancelled
Bad News: Due to Corona the Coface Country Risk Conference 2020 has to be cancelled. Good News: The date for 2021 has been set: Tuesday 18 May, Vienna, Apothekertrakt, Schloss Schönbrunn.
Coface cuts bureaucracy
Coface is temporarily relaxing individual contractual provisions for its clients. For example, the deadline for the notification of overdue accounts is extended by 60 days. See the press release!
Corona and the economy
The corona crisis is spreading to our entire world - the year 2020 will face the global economy with a challenging situation that is threatening the maintenance of a solid economic growth. Although drastic actions have largely been taken in Europe to reduce the spread of the corona virus, WHO estimates that COVID-19 will continue to spread worldwide. Read more!
Moody's confirms A2 rating for Coface
The rating agency Moody's confirmed Coface’s Insurance Financial Strength (IFS) A2 rating on 27 March 2020. The outlook for this rating has been changed to negative.In this uncertain period, Coface is working more closely than ever with its customers, and is taking multiple preventive actions on its risk portfolio. See the press release!
The ratings agency fitch estimates that the adverse effects of the coronavirus pandemic will have a negative impact on the trade credit insurance industry, and that it is now more likely that Coface’s profitability, as measured by Fitch, will reach a level no longer compatible with the current rating. See the press release!
Coface ratings: Overview and details!
Announcement regarding the dividend
COFACE SA’s Board of Directors met on 1st April 2020 to look at the group’s activity in the current economic environment. See the press release!
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