Standard & Poor’s has withdrawn its AA long term counterparty credit and financial strength rating on the trade credit insurers of the Euler Hermes group.
The news follows a restructuring of the business which saw 13 subsidiaries merged into the Belgian operating entity Euler Hermes Europe, including Euler Hermes UK plc.
As a direct result of the restructuring Euler Hermes UK has had its AA long term rating withdrawn.
S&P said that, at the time of withdrawal, the ratings had been on “Creditwatch negative” meaning a downgrade was likely although the ratings for Euler Hermes Europe remain unchanged.
Euler Hermes originally restructured the business to streamline its legal structure and merged 13 divisions into its European operating business in Belgium, with effect from 31 December 2011.
The company was still advertising its AA long term rating on the website of its UK business today.
In an interview with French business newspaper Les Echos, Euler Hermes Group chief executive Wilfried Verstraete admitted there had been a slight downturn in the fourth quarter of 2011.
Verstraete also said a further deceleration in revenue was also likely in 2012. Euler Hermes group is part of the Allianz group of companies.