// Iceland “incredibly well positioned” despite the decision by Coface to temporarily suspend credit insurance cover to some of its suppliers
// The frozen food retailer said only a handful of suppliers would be affected by Coface’s decision
Iceland has said it remains “incredibly well positioned” as Coface decides to suspend credit insurance cover to some of the supermarket’s suppliers.
The frozen food retailer said only a handful of suppliers would be affected by Coface’s decision, The Grocer reported.
The French credit insurance provider was no longer insuring suppliers providing services to the supermarket, following concerns about the impact of the rising energy costs on Iceland.
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“There are many credit insurers in the market, and we know of over £150m of Iceland credit cover still available in the market,” Iceland said.
It also said that Coface is already looking to reinstate this cover.
The French insurer is the third insurer known to have limited its exposure to Iceland over the last few months after Allianz and Atradius both cut coverage to the supermarket in November 2022, leading to some speculation that the decisions are linked to the retailer’s £717m net debt.
”All credit insurers have reduced cover across UK food retail, not just Iceland, over the past six months,” Iceland said.
The retailer has around £550m of bonds that need to be repaid by 2025 and any difficulty in refinancing could potentially open the door to activist investors.
