Coface unveils credit ratings business

Third largest credits insurer in the world will be in competition with Standard & Poor’s, Moody and Fitch.

 ’These companies’ business models should be
controlled while ratings should undergo statistic control’ – said Jerome Cazes,
CEO at Coface. He pointed out that it was the only way to restore confidence
destroyed by rating processes for financial products, which had a significant
contribution in case of the world financial crisis started in the USA.

’There
should be stricter controls for agencies, similar to the ones which have
already been made for stock exchanges, banks and insurance companies, as they
are an important part of the economic and financial system. In case the new
European rules for Basel II stipulates a statistic quality control for the
confidentiality of the banks’ financial ratings it would
be a paradox not to have the sane rules for all rating agencies, Cazes said,

With the new rating service Coface want to be more credible to present
confidence and to be less costly than its powerful competitors. As credit
insurance company Coface holds quality in supplying this service. ’We
have information about more than 50 million world companies and we also have
risk experience, Cazes explained referring to his company’s
expertise as world credit insurer.