Fitch Affirms Groupe BPCE at 'A'; Stable Outlook－xyjufa的部落格

(The following statement was released by the rating agency)
PARIS/LONDON, July 03 (Fitch) Fitch Ratings has affirmed Groupe
BPCE's (GBPCE),
BPCE S.A.'s and the group subsidiaries' Long-Term Issuer Default
Ratings (IDRs)
at 'A' and Short-term IDRs at 'F1'. The Outlook on the Long-Term
IDRs is Stable.
A full list of rating actions is at the end of this comment.
KEY RATING DRIVERS - IDRS, VR AND SENIOR DEBT RATING
GBPCE's IDRs, Viability Rating (VR) and senior debt rating are
underpinned by
its sound business profile, largely oriented towards modest risk
banking
businesses, low risk appetite, solid asset quality, sound
capitalisation and
acceptable profitability. They also reflect higher dependence on
wholesale
funding than some French peers and lower high quality liquidity
buffers than
some international peers.
GBPCE's business model has been stable and its strong retail
franchise has been
able to generate recurring and satisfactory profitability. The
group focuses on
the low-risk - but low-return - retail business in France,
generating modest
earnings volatility through the cycle. GBPCE maintains sizeable
market shares in
French retail banking through its two leading banking
franchises, Banque
Populaire (BP) and Caisse d'Epargne et de Prevoyance (CEP). In
addition, we view
the group's structure as largely positive. Indeed, as a
cooperative banking
group with a small part of its capital being free floating (28%
of Natixis'
capital), the group does not suffer from excessive market return
pressure and
consequently has a modest risk appetite.
GBPCE's profitability is acceptable given its modest risk
profile but its ratios
are somewhat weaker than those of its French cooperative bank
peers, since it
was formulated more recently and cross-selling and cost synergy
opportunities
have therefore been more limited. Consequently, we believe the
group has more
potential for growth in segments where it is below its natural
market share,
such as insurance or even some specialised financial services.
The group's asset quality compares positively with that of its
French peers. Its
prudent underwriting criteria and focus on French retail banking
translate into
one of the lowest impaired loan ratios within large French
banks. While the
coverage ratio may look moderate (53%, albeit broadly in line
with almost all of
its French peers), it should be viewed in light of the sizeable
collateral held
by GBPCE in many transactions. At 20% of the group's equity base
at end-2013,
the unreserved portion of impaired loans remains manageable.
Although Fitch notes the improvement in GBPCE's funding profile,
highlighted by
a decline in short-term wholesale funding and a growing deposit
base, Fitch
considers the group remains somewhat more dependent on wholesale
funding than
most of the other large French banks. Its loans/deposits ratio
was 129% at
end-2013, and further significant reduction may be constrained
by the largely
wholesale nature of funding at two of its main subsidiaries,
Credit Foncier de
France and Natixis (both rated 'A'/Stable). GBPCE's liquidity
has improved
significantly and is now satisfactory, although some
international peers have a
higher buffer of high quality liquid assets and cash.
GBPCE's sound capital ratios are a rating strength. Fitch does
not expect
adequate capital generation to slow down in the near future
given the group's
earnings generation, historically modest dividend payout ratios,
and ability to
issue cooperative shares. In addition, GBPCE's sound weighted
capital ratios are
penalised by a lower use of internal ratings-based approach
(IRBA) for credit
risk than most French banks. At end-2013, GBPCE had a sound
'fully-loaded' Basel
III leverage ratio of just below 4% (based on Tier 1 capital).
GBPCE's VR is at same level as its Support Rating Floor (SRF),
therefore GBPCE's
IDRs (and senior debt ratings) are driven by its standalone
financial strength.
Consequently, GBPCE's IDRs would be unaffected by either a
downgrade of France's
IDRs or lower availability of support from the French state.
GBPCE is not a
single entity but a cooperative banking group. Its banking
networks (BPs and
CEPs) and central body (BPCE S.A.) are bound by a cross-support
mechanism
according to the French Financial and Monetary Code.
Accordingly, Fitch has the
same IDRs for GBPCE and BPCE S.A. The IDRs also apply to the BPs
and CEPs.
KEY RATING DRIVERS - SUPPORT RATINGS, SUPPORT RATING FLOORS
GBPCE's Support Rating (SR) and SRF reflect its systemic
importance domestically
given its size, significant deposit market shares and the fact
it is a core
provider of credit and other key financial services to the
French economy. The
group maintains sizeable market shares in French retail banking,
(from 15% to
25% depending on products), second only to Credit Agricole.
GBPCE is considered
a global systemically important bank according to the Financial
Stability Board.
BPCE S.A.'s SR and SRF reflect its integral role within GBPCE
and Fitch's
opinion that potential state support to the group would flow
through BPCE S.A..
RATING SENSITIVITIES - IDRS, VR AND SENIOR DEBT
A downgrade of the group's 'a' VR would likely result from an
economic downturn
in France that would be severe enough to materially impact the
group's capital
ratios. A downgrade of the VR would not have any impact on the
LT IDR as long as
GBPCE is assigned an 'A' SRF. Nevertheless, the SRF is expected
to be revised to
'No Floor' as announced by Fitch on 26 March 2014 ("Fitch
Affirms SRFs of 64
EMEA Banks; Downward Revisions Likely For Most Due To Weakening
Support").
A material improvement in recurring profitability - likely
arising from broader
cross-selling among the group - that would eventually allow the
bank to have its
capital ratios more in line with higher rated peers, together
with lower
dependence on wholesale funding and larger high quality
liquidity buffer, could
lead to an upgrade of the ratings.
RATING SENSITIVITIES - SUPPORT RATINGS, SUPPORT RATING FLOORS
GBPCE's and BPCE S.A.'s SRs and SRFs would be sensitive to a
decrease in Fitch's
view of France's ability (as measured by its rating) or
willingness to support
GBPCE. These ratings are also sensitive to a change in Fitch's
assumptions
around the availability of sovereign support for French
financial institutions.
Fitch expects the probability of support, if needed, is likely
to decline during
the next one to two years, as further progress is made in
enabling effective
resolution frameworks. Therefore, Fitch expects to downgrade
GBPCE's SR to '5'
and revise down its SRF to 'No Floor'. The timing at this stage
is likely to be
some point in late 2014 or in 1H15.
KEY RATING DRIVERS AND SENSITIVITIES - SUBSIDIARIES
BPCE S.A. is legally committed to maintain adequate liquidity
and solvency for
the entities affiliated to it. The affiliation with BPCE S.A.
concerns over 100
entities, including the group's primary subsidiaries (Natixis,
Credit Foncier de
France, Banque Palatine and BPCE International et Outre-Mer).
The Long-and
Short-term IDRs of Natixis, Credit Foncier de France and Banque
Palatine are
therefore equalised with those of GBPCE. The affiliated
subsidiaries' IDRs will
therefore continue to move in tandem with those of GBPCE unless
there is a
change in the affiliation status, which Fitch views as extremely
unlikely.
Natixis, Credit Foncier de France and Banque Palatine are part
of the group's
cross-support mechanism according to the French Financial and
Monetary Code as
modified in 2013. Therefore, we feel it is more appropriate to
apply our
'Banking Structures Backed by Mutual Support Mechanisms'
criteria. According to
this criteria, Fitch typically assigns the same Long-Term and
Short-Term IDRs
(as those assigned to the group) but no VR or SR. Therefore
Fitch has withdrawn
Natixis' VR and SR and Banque Palatine's and Credit Foncier de
France's SR,
which allows the application of this criteria in a more
consistent manner.
KEY RATING DRIVERS AND SENSITIVITY - SUBORDINATED DEBT AND OTHER
HYBRID
SECURITIES
Subordinated debt and hybrid securities issued by BPCE S.A. and
Natixis are
notched off GBPCE's VR in accordance with Fitch's criteria
'Rating Bank
Regulatory Capital and Similar Securities'. Subordinated lower
Tier 2 debt is
rated one notch below GBPCE's VR to reflect below average loss
severity of this
type of debt when compared with average recoveries. The hybrid
Tier 1 securities
are rated four notches below GBPCE's VR to reflect higher loss
severity risk of
these securities when compared with average recoveries (two
notches from the VR)
as well as a higher risk of non-performance (an additional two
notches).
The rating actions are as follows:
Groupe BPCE
Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
Viability Rating: affirmed at 'a'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A'
BPCE S.A.
Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A'
Senior unsecured debt: affirmed at 'A'
BMTN programme: affirmed at 'A'
EMTN programme: Long-term affirmed at 'A' and Short-term
affirmed at 'F1'
Short-term debt: affirmed at 'F1'
Innovative Tier 1: affirmed at 'BBB-'
Non-innovative tier 1: affirmed at 'BBB-'
Lower Tier 2: affirmed at 'A-'
Commercial paper: affirmed at 'F1'
Natixis
Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1' and withdrawn
Viability Rating: affirmed at 'a' and withdrawn
Senior unsecured debt: affirmed at 'A'
Market linked notes: affirmed at 'Aemr'
Lower Tier 2: affirmed at 'A-'
Hybrid capital instruments: affirmed at 'BBB-'
BMTN programme: affirmed at 'A'
EMTN programme: Long-term affirmed at 'A' and Short-term
affirmed at 'F1'
Debt issuance programme guaranteed by Caisse des Depots et
Consignations (CDC):
Long-term affirmed at 'AA+' and Short-term affirmed at 'F1+'
Debt issuance programme guaranteed by BPCE S.A.: Long-term
affirmed at 'A' and
Short-term affirmed at 'F1'
Senior unsecured debt guaranteed by Caisse des Depots et
Consignations (CDC):
affirmed at 'AA+'
Certificate of deposit: affirmed at 'F1'
Commercial paper: affirmed at 'F1'
NBP Capital Trust I
Preferred stock: affirmed at 'BBB-'
Credit Foncier de France
Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1' and withdrawn
BMTN programme: affirmed at 'A'
EMTN programme: long-term affirmed at 'A' and short-term
affirmed at 'F1'
Senior unsecured debt: affirmed at 'A'
Certificate of deposits: affirmed at 'F1'
Banque Palatine
Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1' and withdrawn
BMTN programme: affirmed at 'A'
Certificate of Deposits: affirmed at 'F1'
The following entities' Long-term IDRs have been affirmed at
'A'/Stable Outlook
and their Short-term IDRs have been affirmed at 'F1':
Banque Populaire Atlantique
Banque Populaire Bourgogne, Franche-Comte
Banque Populaire Aquitaine Centre Atlantique
Banque Populaire Cote d'Azur
Banque Populaire d'Alsace
Banque Populaire de l'Ouest
Banque Populaire de Lorraine-Champagne
Banque Populaire des Alpes
Banque Populaire du Massif-Central
Banque Populaire du Nord
Banque Populaire du Sud
Banque Populaire Loire et Lyonnais
Banque Populaire Occitane
Banque Populaire Provencale et Corse
Banque Populaire Rives de Paris
Banque Populaire Val-de-France
BRED - Banque Populaire
CASDEN - Banque Populaire
Groupe Credit Cooperatif
Credit Maritime Mutuel
Caisse d'Epargne et de Prevoyance d'Alsace
Caisse d'Epargne Aquitaine Poitou Charentes
Caisse d'Epargne et de Prevoyance d'Auvergne et du Limousin
Caisse d'Epargne et de Prevoyance de Bourgogne Franche-Comte
Caisse d'Epargne et de Prevoyance Bretagne-Pays de Loire
Caisse d'Epargne et de Prevoyance Cote d'Azur
Caisse d'Epargne et de Prevoyance Ile-de-France
Caisse d'Epargne et de Prevoyance du Languedoc Roussillon
Caisse d'Epargne et de Prevoyance Loire-Centre
Caisse d'Epargne et de Prevoyance Loire Drome Ardeche
Caisse d'Epargne et de Prevoyance de Lorraine Champagne-Ardenne
Caisse d'Epargne et de Prevoyance de Midi Pyrenees
Caisse d'Epargne et de Prevoyance Nord France Europe
Caisse d'Epargne et de Prevoyance Normandie
Caisse d'Epargne et de Prevoyance de Picardie
Caisse d'Epargne et de Prevoyance Provence Alpes Corse
Caisse d'Epargne et de Prevoyance de Rhone Alpes
Credit Cooperatif:
Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
BMTN Programme: affirmed at 'A'
Commercial paper: affirmed at 'F1'
Contact:
Primary Analyst (Groupe BPCE, Banque Populaire and Caisse
d'Epargne et de
Prevoyance regional banks, BPCE S.A. and Credit Cooperatif)
Eric Dupont
Senior Director
+33 1 44 29 91 31
Fitch France S.A.S
60 rue de Monceau,
75008 Paris
Primary Analyst (Natixis and NBP Capital Trust I)
Alain Branchey
Senior Director
+33 1 44 29 91 41
Fitch France S.A.S
60 rue de Monceau,
75008 Paris
Primary Analyst (Credit Foncier de France, Banque Palatine)
Solena Gloaguen
Director
+44 20 3530 1126
Fitch Ratings Limited
30 North Colonnade
London E14 5GN
Secondary Analyst (Groupe BPCE, Banque Populaire and Caisse
d'Epargne et de
Prevoyance regional banks, BPCE S.A., Natixis, Credit Foncier de
France, Banque
Palatine)
Francois-Xavier Marchand
Associate Director
+33 1 44 29 91 46
Committee Chairperson
Michael Dawson-Kropf
Senior Director
+49 69 768076 113
Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153,
Email:
elaine.bailey@fitchratings.com.
Additional information is available at www.fitchratings.com.
Applicable criteria, 'Global Financial Institutions Rating
Criteria', dated 31
January2014; 'Rating Criteria for Banking Structures Backed by
Mutual Support
Mechanisms' dated 18 December 2013 are available at
www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
here
Rating Criteria for Banking Structures Backed by Mutual Support
Mechanisms
here
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Solicitation Status
here
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