Fitch upgrades Groupama

Fitch Ratings said it upgraded Groupama SA's issuer default rating to BB+ from BB.

The outlook is stable.

The two subordinated debt instruments issued by Groupama also were upgraded to BB- from B+ and B-, respectively. The notes were removed from Rating Watch negative, where they were placed in Sept. 27, 2011, Fitch said.

The deeply subordinated notes issued by Groupama also were upgraded to B- and revised to Rating Watch positive from Rating Watch negative.

The upgrades reflect the material recovery in the group's solvency at year-end 2012 from a low level reached a year earlier due to both management actions and recovery in financial markets, Fitch said.

Offsetting this positive development, the full year 2012 operating result was a loss of €255 million, mostly due to exceptional charges, such as goodwill impairments and restructuring provisions, the agency said.

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