Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's affirms BPCE's A2 long-term supported ratings; stable outlook

16 May 2014

Ratings of Natixis and Banque Palatine also affirmed

London, 16 May 2014 -- Moody's Investors Service has today affirmed the A2 long-term supported ratings of BPCE, the central institution and main issuing entity of Groupe BPCE (unrated) which continues to incorporate our unchanged assessment of group support (reflected in an adjusted baseline credit assessment (BCA) of baa2) as well as systemic support. Concurrently, BPCE's D bank financial strength rating (BFSR), mapping into a BCA of ba2 was affirmed at the current level. The firm's Prime-1 short-term ratings were also affirmed. The rating action reflects Moody's view that the risk and business profiles of BPCE, and of the whole Groupe BPCE -- from which its long-term ratings are ultimately derived -- remain compatible with current rating levels.

Concurrently, Moody's affirmed the A2 long-term debt and deposit ratings as well as the Prime-1 ratings of two of BPCE's subsidiaries, Natixis and Banque Palatine. Their respective BFSRs of D (mapping into a BCA of ba2) and D+ (mapping into a BCA of baa3) were also affirmed. In addition, Moody's affirmed the ratings of the subordinated, junior subordinated and capital instruments issued and/or backed by BPCE and Natixis, as these ratings are derived from their baa2 adjusted BCA, which incorporate our unchanged assessment of the group's ability and willingness to provide support in case of need.

The outlook on the BFSRs of BPCE and Natixis is stable whereas the outlook on the BFSR of Banque Palatine was changed to negative from stable. The outlook is stable on all supported ratings of BPCE, Natixis and Banque Palatine.

Please click on this link (http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_170749) for the List of Affected Credit Ratings. This list is an integral part of this press release and identifies each affected issuer.

RATINGS RATIONALE

-- UNCHANGED ADJUSTED STANDALONE CREDIT ASSESSMENTS FOR BPCE AND ITS SUBSIDIARIES

The mutualist Groupe BPCE itself is not a legal entity and it is thus not rated. Its main issuing vehicle is the central institution BPCE, which, together with the other entities included within the group solidarity mechanism - that is embedded in the French banking law - benefits from the creditworthiness of the whole group. This arrangement translates into a baa2 adjusted BCA for BPCE and its main subsidiaries.

Moody's decision for an unchanged adjusted BCA for BPCE and its subsidiaries at baa2 reflects different factors. Whilst Moody's recognises material progress towards its integration since the group was set up in 2009, it believes that it will take more time for Groupe BPCE to become a truly fully-integrated group and benefit from the associated benefits and synergies. This is evidenced by the current overall group profitability and operational efficiency levels, which are sub-par and behind those of its domestic peers.

The key rating constraint for Groupe BPCE remains its liquidity/funding position. Albeit on an improving trend since 2011, the group still has a sizeable stock of short-term and long-term confidence-sensitive wholesale funding. This continues to pose refinancing risk, which is only partly mitigated by its liquidity buffer, whose quality Moody's considers to be lower than that of its domestic and European peers because it includes a large portion of assets that can be pledged with central banks but that are non-marketable.

Groupe BPCE has also demonstrated good resilience to the still uncertain economic environment in France and the rest of Europe in recent quarters, as evidenced by robust asset quality metrics. Nevertheless, Moody's continues to believe that its asset quality profile remains under pressure, given the weak economic growth prospects for France and the rest of Europe over the next 12-18 months.

--STANDALONE CREDIT ASSESSMENT OF BPCE

The affirmation of BPCE's D BFSR (mapping into a BCA of ba2) with stable outlook reflects Moody's view that the bank's risk and business profiles remain compatible with its current rating levels. As the central institution and main issuing entity of the group, BPCE mainly consolidates Natixis, Banque Palatine, Crédit Foncier de France (A2 stable; E+stable/b1) and Locindus S.A. (A2 stable/ba3). Crédit Foncier de France and Locindus S.A. were excluded from today's rating action.

BPCE's ba2 BCA standalone credit assessment reflects its (1) relatively narrow earnings base, resulting from the consolidation of the main group's subsidiaries which, however, does not include the retail and commercial banking operations of the group that are undertaken through its two networks of regional banks (Banques Populaires and Caisses d'Epargne); (2) most-entirely wholesale funding profile, due to its role as the main debt issuing entity for the whole Groupe BPCE, which constrains its standalone credit assessment because of the confidence-sensitive nature of market funding; and (3) its adequate capitalisation.

The firm's BCA continues to factor-in the challenges that BPCE -- through its consolidated subsidiaries -- will continue to face in the coming quarters due to a still uncertain economic outlook in France, to which it is most exposed.

--STANDALONE CREDIT ASSESSMENT OF NATIXIS

The affirmation of Natixis's D BFSR (mapping into a ba2 BCA) with a stable outlook reflects Moody's view that, despite its wide array of activities and the ongoing deleveraging of its legacy asset portfolio, the bank's credit fundamentals continue to be compatible with the current level. This points to the bank's vulnerability to challenging economic conditions in France and the rest of Europe, where it mainly operates. Moody's expects the bank's asset quality, which deteriorated materially during 2012 and 2013, to remain under pressure in the coming quarters.

Natixis has an established franchise in corporate lending, asset management and other selected activities both in France and internationally and its business mix covers a wide range of activities. Some of these activities generate stable and predictable income, and, for this reason, its overall earnings are less volatile than more traditional corporate and investment banks. In addition, the BCA takes into account the efforts being deployed to leverage cross-selling opportunities with the rest of the group. However, in Moody's view, the bank continues to face some challenges in relation to the transition to an 'originate-to-distribute' business model, which the bank has been undertaking to reduce capital and funding consumption.

Despite the ongoing reduction of its legacy asset portfolio, which management expects to wind-down by end-June 2014, Natixis's risk profile continues to be negatively affected by certain capital markets activities, which are inherently risky. As part of the 2014-17 strategic plan, the bank's management has announced the expansion of some of these activities internationally. Moody's believes that although they are limited in scope, these activities could increase the bank's risk profile, if not adequately controlled.

Natixis's ba2 BCA is also constrained by its large reliance on confidence-sensitive market funding, both short and long term.

--STANDALONE CREDIT ASSESSMENT OF BANQUE PALATINE

The affirmation of Banque Palatine's D+ BFSR (mapping into a BCA of baa3) adequately reflects the bank's risk and business profiles in Moody's opinion. Banque Palatine remains particularly vulnerable to the current uncertain operating environment in France, to which it is exposed as a result of its business focus to large SMEs. This is evidenced by deteriorating asset quality and profitability metrics in recent quarters; Moody's does not expect this trend to reverse over the next 12-18 months. This is also augmented by its high single-borrower concentration risk.

In Moody's view, asset quality risks are partly mitigated by a relatively good liquidity/funding position. With a loan-to-deposit ratio lower than 100% at end-2013, the bank is the only rated entity of Groupe BPCE that is not structurally reliant on wholesale funding. The firm's BCA is also commensurate with the relatively high level of single-borrower concentration risk against an adequate capitalisation level, but will remain under pressure in the current operating environment, in which its earnings generation capacity is constrained. For this reason, the outlook on its BFSR was changed to negative from stable.

--LONG-TERM RATINGS OF BPCE, NATIXIS AND BANQUE PALATINE

The affirmation of the A2 long-term supported ratings for BPCE, Natixis and Banque Palatine follows the affirmation of their BFSRs and Moody's unchanged support assumptions. The long-term ratings for these three institutions incorporate three notches of cooperative support, leading to an adjusted BCA of baa2 and a further three notches of systemic support, reflecting the high probability of government support for large, systemically important banking groups in France.

The ratings for the subordinated, junior subordinated and capital instruments issued and/or backed by BPCE and Natixis were also affirmed at their current levels. These ratings are notched-off from the adjusted BCA of baa2, which incorporate the credit strength of whole Groupe BPCE and is reflected in a three-notch uplift from the standalone credit assessments of these two entities.

RATIONALE FOR OUTLOOKS

The stable outlook on the BFSRs of BPCE and Natixis as well as the long-term ratings of BPCE, Natixis and Banque Palatine, reflects Moody's view that the currently foreseen risks to creditors, particularly those resulting from a still challenging economic outlook in France are already incorporated in the ratings. Nevertheless, negative rating momentum could develop if operating conditions deteriorate beyond current expectations.

The change in outlook to negative from stable on the BFSR of Banque Palatine reflects additional profitability and asset quality pressure that this firm is facing in the current challenging operating environment.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Rating upgrades are unlikely in the short-term, as indicated by the stable outlook on all long-term ratings. However, some upwards ratings pressure could develop if Groupe BPCE as a whole improves its credit profile, which could in turn translate into a higher adjusted BCA for BPCE, Natixis and Banque Palatine.

Higher standalone credit assessments for BPCE and Natixis, whose BFSRs have a stable outlook, could be achieved by these institutions if they demonstrate a significant improvement in their credit rating drivers, particularly liquidity, asset quality, profitability and efficiency.

The negative outlook on Banque Palatine's BFSR indicates that an upgrade is unlikely over the next 12-18 months. However, some positive pressure on its standalone credit assessment could materialise if the bank were to improve its deteriorating asset quality profile and/or its profitability and capitalisation. A reduction in single-borrower concentration risk could also be positive for the ratings.

Downgrade pressure could develop on the ratings for BPCE, Natixis and Banque Palatine as a result of higher than expected deterioration in the credit fundamentals of these three firms, a weakening credit standing of the whole Groupe BPCE and/or in the event of a multi-notch downgrade of the rating of the Government of France. In addition, a downward revision of Moody's current assumptions of systemic support -- which may arise in the context of the new Bank Recovery and Resolution Directive -- could also have negative implications for the A2 long-term ratings.

The principal methodology used in these rating was Global Banks published in May 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Andrea Usai
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's affirms BPCE's A2 long-term supported ratings; stable outlook
No Related Data.
© 2019 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 ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S 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 RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.

CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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 rating, agreed to pay to MJKK or MSFJ (as applicable) for 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.

​​​​
Moodys.com