Coface downgrades Eurozone countries and US

The Coface country rating does not concern sovereign debt, but rather indicates the average level of risk presented by a country’s companies on their commercial transactions. This average trend is not a guide to each company’s rating,

Coface, the international credit insurer, has downgraded eight Eurozone countries as well as the US’ credit risk rating. South Africa remains unchanged at A3 negative watch.

This credit risk rating is the general businesses credit risk in that country experienced by Coface. The downgrading of a number of countries indicates an increased credit risk in doing business with companies in those countries.

Five Eurozone countries were downgraded from A2 positive watch to A2. These were Germany, Austria, Belgium, France and Netherlands.

Italy was downgraded from A3 to A3 negative watch, Portugal A4 to A4 negative watch, and Greece from B to C. The US was downgraded from A2 positive watch to A2.

While South Africa’s current rating has remained unchanged throughout the recession and recovery years, South Africa remains vulnerable to the global trade conditions.