Credit Insurers are right about some things!
Judging by some of the comments I’ve heard after the publication of the news story “Phobia over secret accounts threatens recovery” (AA- 10th September), there is a lot of irritation and frustration in the market lingering over the actions of major credit insurers during this recession.
Whether you feel agrieved or not by the insurers’ actions of reducing cover on risks, price hiking premium rates etc, you can’t argue with the main point Fabrice Desnos of EH is making in the article.He is right to say that companies trading their way out of recession in 2010/2011 may well be saddled with poor credit ratings/scores based on statutory accounts filed at Companies Registry covering the recessionary years of 2008 and 2009. If by that time they are trading more healthily than they were during the recession, then why not share their management accounts to get better credit terms from suppliers and attract higher credit insurance cover from insurers?
Most companies in this country don’t credit insure their debts, but almost all companies need a good credit rating from credit agencies like Graydon and D and B to grow successfully. If you can gain a better credit profile by sharing management account data, why not do it? It seems to me that withholding good looking up to date financial data just to get back at insurers seems to be like cutting off your nose to spite your face.