Fitch: Ethias debt on negative watch

Fitch Ratings said it affirmed Ethias SA's issuer default rating at BBB- and kept its subordinated debt rating of B on Rating Watch negative.

The outlook is stable.

The ratings reflect the €1.5 billion support Ethias received in December 2008 from the Walloon region, the Flanders region and the Belgian federal government, which was crucial in enabling it to continue its operations, Fitch said.

However, the agency said the group's capital adequacy remains low for a company rated in the BBB category and vulnerable to further volatility of unrealized capital gains on equity investments due to investment concentration risk on some of its financial securities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.