S&P downgrades Groupama to BB junk status

The ratings agency said that the French insurer and its guaranteed subsidiaries were moved to the rating, a junk status, after it had reassessed the business and financial profiles in light of management's recent actions to improve capital adequacy.

S&P commented that though the measures undertaken by the management were positive, in its view they were unlikely to restore Groupama's capital adequacy to levels supportive of an investment-grade rating over the coming year.

It added that the