Positive changes in credit risk in North America and Asia - Coface

PARIS - In Asia and North America, dynamic private demand continues to improve sector risks, says credit risk insurer Coface in its Quarterly report.In North America, automobile and retail risks have eased from ‘medium' to ‘moderate’ on a positive trend in household consumption, Coface says, with the car industry seeing new car sales return to pre-crisis levels, boosted by renewal requirements. In parallel, carmakers' cash flows have increased 19% over the last year.

In the Canadian and US retail sector, sales have risen 3.9% for online and traditional retailers over the last year. Turnover, up 5% at end-October 2013, also reflects this renewed buoyancy.
In emerging Asia, Coface is ranking service industry credit risk as ‘moderate’. It says turnover and profitability have increased noticeably on the back of corporate services, notably IT and engineering. “Across the region, the emergence of a Chinese middle class is boosting tourism in Asian countries, a trend that will benefit from rising Chinese consumer income in the years ahead

In Western Europe, risks are broadly stabilising as the Eurozone climbs out of recession. But sluggish domestic demand in Southern Europe is affecting European sector risks, and no one sector has yet achieved a ‘moderate’ credit risk rating.” www.coface.com (ATI).