TEXT - Fitch revises Groupama outlook to evolving
Mon Dec 17, 2012 11:51am EST
(The following statement was released by the rating agency)
Dec 17 - Fitch Ratings has revised Groupama S.A. and its core subsidiaries'
Outlooks on their Issuer Default Ratings (IDR) and Insurer Financial Strength
(IFS) ratings to Evolving from Negative.
At the same time, all IDRs and IFS ratings have been affirmed. The ratings of
the three hybrid debt instruments issued by Groupama S.A. remain on Rating Watch
Negative (RWN) at 'B+, 'B-' and 'CCC', respectively.
The Outlook revision reflects Fitch's view that the group's solvency is likely
to recover at year-end 2012 from the low level reached a year earlier and that
full year 2012 operating profit (i.e., excluding the negative impact from the
disposal of subsidiaries) is likely to be positive. Fitch expects to review the
ratings again when full year 2012 combined accounts are published.
The maintained RWN on the subordinated debt instruments continues to reflect
Fitch's view of the risk of further coupon deferral.
The key rating triggers that could result in a downgrade include further
non-payment of coupons, deterioration of the group's financial profile,
especially in terms of solvency (regulatory solvency ratio below 105%), as well
as its inability to translate measures aimed at improving performance into a
positive operating profit for ongoing operations.
The key rating triggers that could result in an upgrade include improvement in
the regulatory solvency ratio (130% at year-end 2012) and in profitability
(positive operating profit from ongoing operations for the full year 2012).
