MOODY'S ASSIGNS A1/P-1 DEPOSIT RATINGS AND C FINANCIAL STRENGTH RATING TO FRANCE'S NATEXIS BANQUES POPULAIRES; WITHDRAWS THE C+ FINANCIAL STRENGTH RATING OF CAISSE CENTRALE DES BANQUES POPULAIRES WHILE CONFIRMING ITS Aa3/P-1 RATINGS; CONFIRMS WITH A POSIT
Moody's Investors Service assigned A1/P-1 long- and short-term deposit ratings and a C financial strength rating to France's Natexis Banques Populaires (formerly Natexis S.A.). At the same time, the C+ financial strength rating of Caisse Centrale des Banques Populaires (CCBP) was withdrawn and the D+ financial strength rating of Natexis Banque was confirmed with a positive outlook. In addition, the preferred stock rating of Natexis AMBS Company L.L.C. was upgraded at "a3" from "baa1". Moody's also confirmed the Aa3 senior long-term debt and deposit ratings of all rated Banques Populaires, as well as the A1 long-term rating of Natexis Banque, while maintaining a negative outlook on all these ratings. The short-term ratings of Banques Populaires and Natexis Banque were confirmed at Prime-1. The ratings of Natexis's long-term debt guaranteed by the Republic of France remain unchanged at Aaa.
These rating actions conclude a rating review process initiated in January 1999, when Banques Populaires Group announced a major restructuring of its wholesale and asset management activities. Banques Populaires currently hold 71.4% of the capital of Natexis S.A., the holding company of Natexis Banque and this controlling interest should reach at least 85% following the restructuring.
Commenting these various rating actions, Moody's said that the withdrawal of CCBP's financial strength rating reflected the fact that CCBP's role will in future be restricted to its statutory role as Banques Populaires's central funding entity. Following the full transfer of its activities and staff to Natexis Banques Populaires, CCBP will no longer act as an operating bank and Natexis Banques Populaires (NBP) will now become the group's main operating subsidiary in wholesale banking and capital markets activities, as well as the holding company for the group's affiliates in asset management, insurance etc. NBP and its subsidiary Natexis Banques will shortly start operating as a single business unit and a merger of the two legal entities is expected to take place over the medium term.
In respect to the transfer of CCBP's assets and liabilities, Moody's noted that if debt will be transferred from CCBP (senior at Aa3) to NBP without a full guarantee from CCBP, it will carry the ratings appropriate for NBP debt (senior at A1).
In confirming the Aa3 long-term ratings of CCBP and of 13 regional banks of the Banques Populaires group, Moody's said that the restructuring should not affect the group's overall creditworthiness - which continues to be underpinned by the quality of its franchise, by the profitability of the regional banks' retail operations, and by the strong deposit base.
Moody's also said that the C financial strength rating assigned to Natexis Banques Populaires reflected its good pro-forma financial structure and business mix, mitigated however by lower profitability indicators and by a somewhat higher risk profile than the Banques Populaires. In its role of provider of financial services to the Banques Populaires, NBP's franchise value hinged on the strong distribution capacity of their retail network. At the same time, while the combination of CCBP's and Natexis Banque's wholesale banking activities will clearly benefit from a higher critical mass and should allow for economies of scale, the group's franchise value and breadth of business appear more moderate than those of its main domestic competitors.
Finally, in confirming Natexis Banque's D+ financial strength rating, Moody's said that although the bank's recovery appear on track, as reflected by the positive rating outlook, its financial strength still remains more modest, characterized by an increasing reliance on market driven revenues and by the slow materialization of costs savings.
The following ratings were assigned:
Natexis Banques Populaires (formerly Natexis S.A.) - long-term deposit at A1, short-term deposit at P-1, financial strength at C.
The following rating was upgraded:
Natexis AMBS Company L.L.C. - preferred stock at "a3" from "baa1".
The following rating was withdrawn:
Caisse Centrale des Banques Populaires - bank financial strength at C+.
The following ratings were confirmed:
Caisse Centrale des Banques Populaires - senior long-term obligations at Aa3, subordinated debts at A1, issuer at Aa3 and short-term deposit at Prime-1.
Bred Banque Populaire - long-term debt and deposit at Aa3, short-term deposit at Prime-1 and financial strength at D+.
Banque Monétaire et Financière - long-term debt and deposit at Aa3 and short-term deposit at Prime-1.
Banque Populaire Industrielle, Sud de Paris - long-term deposit at Aa3 and short-term deposit at Prime-1.
Banque Populaire de la Région Economique de Strasbourg - long-term deposit at Aa3.
Banque Populaire Bretagne Atlantique - long-term deposit at Aa3.
Banque Populaire Toulouse-Pyrénées - long-term deposit at Aa3.
Banque Populaire de Franche-Comté - long-term deposit at Aa3.
Banque Populaire du Haut Rhin - long-term deposit at Aa3.
Banque Populaire de Lorraine - long-term deposit at Aa3.
Banque Populaire de l'Ouest - long-term deposit at Aa3.
Banque Populaire de la Région Sud de Paris - long-term deposit at Aa3.
Banque Populaire du Nord - long-term deposit at Aa3.
Casden - Banque Populaire - long-term deposit at Aa3 and short-term deposit at Prime-1.
Natexis Banques Populaires (formerly Natexis S.A.) - long-term debt guaranteed by Natexis Banque S.A. at A1, subordinated debt guaranteed by Natexis Banque S.A. at A2, junior subordinated debt guaranteed by Natexis Banque S.A. at A3 and issuer at A1.
Natexis Banque S.A. - short-term deposit at P-1, long-term debt and deposit at A1, subordinated debt at A2, junior subordinated debt at A3, issuer at A1 and financial strength at D+.
Interfinance Natexis N.V. - long-term debt jointly guaranteed by Natexis S.A. and Natexis Banque S.A. at A1.
Interfinance Natexis N.V. - commercial paper jointly guaranteed by Natexis S.A. and Natexis Banque S.A. at Prime-1.
BFCE US Corp. - commercial paper guaranteed by Natexis Banque S.A. at Prime-1.
The ratings of the debt obligations of both Natexis Banque and Natexis S.A. guaranteed by the Republic of France are confirmed at Aaa.
Banques Populaires group is a mutual banking institution, whose statutory funding vehicle, Caisse Centrale des Banques Populaires, is based in Paris. The group had consolidated assets at year-end 1998 of EUR163 bn (FF1,070 bn or approximately USD171 bn). The Natexis group, headquartered in Paris, had consolidated assets of EUR42.5 bn (FF279 bn or approximately USD44.6 bn) at year-end 1998.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY'S CREDIT RATINGS,
ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
MOODY'S CREDIT RATINGS,
ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.
To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.
To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.
Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.