(OTTAWA) - August 24, 2009 - Export Development Canada (EDC) has been assigned a first-time insurance financial strength (IFS) rating of Aaa by Moody's Investors Service, the highest such rating assigned by Moody's.
EDC is the first export credit agency to receive an Aaa IFS rating from Moody's, which was issued August 17, 2009, and the only reinsurer in the world currently having an Aaa IFS rating from Moody's.
"This is the global standard for insurers and the rating will facilitate our work with our Canadian and international partners in the private surety, credit insurance and political risk insurance industries," said Eric Siegel, EDC's President and CEO.
By having the highest possible IFS rating, EDC's ability to help Canadian exporters to bridge gaps in private sector insurance and capital markets is increased because international financial institutions will be better able to assess risk in transactions involving EDC's insurance or reinsurance.
Moody's insurance financial strength ratings are opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations.
IFS ratings are internationally recognized in the insurance/reinsurance industry and are increasingly important for (re)insurers, rating agencies and regulators as they assess counterparty risk and capital adequacy during the current economic downturn.
This new insurance rating complements Moody's rating of EDC's debt securities. Moody's currently maintains Aaa senior unsecured debt ratings (both local-currency and foreign-currency) and a Prime-1 short-term debt rating for commercial paper on EDC.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, is a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada's Top 100 Employers for eight consecutive years.
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry: ptaylor@edc.ca
