Fitch Ratings, the international rating agency, has affirmed the "AA" Insurer Financial Strength rating (IFS) on Coface S.A., the head entity of the Coface Group. Separate "AA" IFS ratings have also been affirmed on the German, Italian and Austrian subsidiaries of Coface. The agency also notes that underwriting profitability has entered a recovery phase after suffering a serious hit due to the sharp downturn in the economic environment that has taken place since 2001. Coface has experienced a sharp deterioration in its recent underwriting results. As a response, the group has tightened its risk selection criteria, pruned its risks portfolio and increased tariffs. Fitch considers these measures to be appropriate in the current challenging environment and will lead to a durable improvement in underwriting results. The agency expects Coface's loss ratio to recover substantially from its high level posted in 2001, and that the group will maintain its very strong position in the credit insurance business. Capital adequacy should remain at an excellent level on a risk-adjusted basis. The Coface Group is the third largest international credit insurer with an estimated 15 percent of global market share, as well as being the leading export credit insurer with a 25 percent market share. It holds dominant or very strong positions in major European countries, built both through acquisitions and organic growth. The group's major competitive advantages are its excellent franchise, consistent strategy and its IT systems that allow streamlined underwriting under strict guidelines, further strengthened by a strong standing in the complementary businesses of credit information, factoring and debt collection.