S&P’s downgrade of Atradius has rattled the credit insurance industry this week.  S&P had downgraded Atradius from A to BBB.  The downgrade came as a result of a downgrade of Spain’s sovereign debt, because the main shareholder of Atradius is the Spanish based Grupo Catalana Occidente and thus subject to sovereign debt exposure.   S&P warns that if it has to down grade Spain again, it would have to downgrade Atradius accordingly.

Atradius market share of the credit insurance market is approximately 30%.  Atradius said it was financially strong and well capitalized.  Source:  Financial Times