Dagong Europe affirms AA- long term credit rating on Euler Hermes SA, outlook stable

Dagong Europe has affirmed the long-term credit rating of AA- and equivalent short-term credit rating of A-1 on Euler Hermes group core subsidiary Euler Hermes SA, a statement from the rating agency said on Wednesday.

Dagong Europe defined the financial profile of Euler Hermes SA, based in Brussels, as "very strong and resilient" with prudent risk management practices and large capital base.

EH, headquartered in Paris and part of the Allianz group, is a global leader in the specialized niche credit insurance market present in more than 50 countries and with exposure in most of the countries in the world.

EH wrote over 30 percent of global credit insurance premiums in 2013, with majority of premiums coming from Europe.

"The rating was also supported by EH's leading competitive position in the credit insurance industry, coherent development strategy and strong execution," the statement said.

Yet these strengths, the statement also added, were "partially constrained by EH's mono-line business model (credit and trade insurance), the potentially high product risk and sensitivity to economic cyclic activities."

The outlook was stable, Dagong Europe said, reflecting expectations that EH will maintain and strengthen its competitive positioning, deliver on its steady and controlled growth strategy in emerging markets, and maintain a large capital base and strong profitability over the cycle.

Dagong Europe was established in 2012 with the headquarters in the Italian business capital of Milan as the European branch of Chinese rating agency Dagong Global.

In 2013 Dagong Europe received authorization and registration by the European Securities Market Authority (ESMA) to provide credit opinions on financial institutions including insurance companies and non-financial corporates. Enditem