CIA. ESP. SEGUROS CREDITO EXPORTACIÓN S.A. (CESCE)

Ethifinance Ratings affirms CESCE, S.A.'s rating at "A-" with a "Stable" outlook. Compañía Española de Seguros de Crédito a la Exportación, S.A. (hereinafter, CESCE) is a multinational group that promotes business development in Europe and Latin America. It specializes in commercial risk management, technology and information. It also acts as the Spanish Export Credit Agency (ECA), administering export credit insurance, covering medium and long-term risks, on behalf of the State. The rating is based on very high levels of profitability and efficiency, the absence of financial leverage, a robust position in terms of solvency and liquidity, a conservative investor profile with an investment portfolio composed mainly of government debt, and diversification with complementary businesses to the insurance activity. However, the rating is limited by the country ceiling derived from the geographic concentration in Spain, as well as by an uncertain economic context in which defaults in the Spanish portfolio, which are largely related to the working capital loan of the Covid Lines, are increasing significantly.