Moody's upgrades Natexis Banques Populaires, renamed Natixis, to Aa2; confirms Aa2 ratings of Caisse Nationale des Caisses d'Epargne Prevoyance and of IXIS CIB
London, 17 November 2006 -- Moody's Investors Service Ltd. has upgraded to Aa2 with a stable
outlook from Aa3 the long-term deposit and senior unsecured debt
ratings of Natexis Banques Populaires, renamed Natixis. In
addition, the outlook on the bank's C financial strength rating
(FSR) has been changed to positive from stable. The P-1
short-term bank deposit and debt ratings of Natixis and their stable
outlook are unchanged. Moody's has also concluded the reviews initiated
on 26 May 2006 and on 7 June 2006 and confirmed, with a stable outlook,
the long-term deposit and senior unsecured debt ratings of --
- Caisse Nationale des Caisses d'Epargne Prevoyance (CNCEP) at
Aa2 (its P-1/B ratings are unchanged). The review focused
on the importance of the French State's support without Caisse des Depots
et Consignations (CDC) owning a direct stake in CNCEP;
- IXIS Corporate and Investment Bank (IXIS CIB) at Aa2 (its P-1/C
ratings are unchanged). The review focused on the strategic importance
of IXIS CIB within Natixis and on support considerations; and
- Banque Palatine at Aa3 (its P-1/C- ratings are
unchanged). The review focused on CNCEP's support of the bank and
on clarifying the position, role and strategy of Banque Palatine
within the Savings Banks group as a consequence of the creation of Natixis.
As part of this rating action, Moody's has also upgraded to Aa2
from Aa3 Credit Foncier de France's (CFF) long-term bank deposit
and debt ratings (its P-1/C- ratings are unchanged).
In addition, Moody's has affirmed the Aaa insurance financial strength
(IFS) ratings of CIFG Guaranty, CIFG Europe and CIFG Assurance North
America, Inc., the financial guaranty insurance companies
contributed to Natixis by CNCEP. The ratings of the Banque Populaire
group, which is rated Aa3/P-1/B (stable outlooks) through
the Banque Federale des Banques Populaires (BFBP), are also affirmed.
The ratings of Coface and related companies will be commented on in a
separate press release, noted Moody's.
Commenting on these rating actions, Moody's said that the Aa2 long-term
deposit and senior unsecured debt ratings of Natixis incorporate the strong
support expected from both the Banque Populaire and the Savings Banks
mutualist groups. In particular, these ratings take into
account the very strong commitment of Natixis' strategic shareholders
- CNCEP and BFBP - vis-a-vis the Bank of France
to support Natixis. They also factor in the expectation that Natixis
will ultimately benefit from a "double affiliation" status, as proposed
amendments to the "Code Monetaire et Financier" have reached an advanced
stage of approval. In addition, they take into account the
expectation that Natixis will benefit from specific internal support mechanisms
agreed between BFBP and CNCEP in a Shareholders' Pact and from other internal
agreements reached by these two strategic shareholders.
With regards to the change of Natixis' C FSR rating outlook to positive
from stable, Moody's said that this rating action reflects,
in particular, the strengthened franchise and market position of
Natixis post the contribution of key CNCEP businesses, which complement
well those of the former NBP. It reflects the diversified revenue
streams of Natixis, its comfortable capitalisation, as well
as the expectation that the bank's financial strength will improve as
revenue and cost synergies are realised, and as the bank's medium-term
rationalisation and growth strategy are implemented. Moody's cautioned
however that execution and operational risks in respect of the restructuring
of the bank and the integration of subsidiaries, particularly IXIS
CIB, are material. The rating agency also said that it would
closely follow developments in the area of risk governance and management.
Commenting on individual reviews concluded in this rating action,
Moody's said that the long-term deposit and senior unsecured debt
ratings of CNCEP -- confirmed at Aa2 -- incorporate
Moody's expectation of some continued State support, in spite of
CDC's forthcoming exit from CNCEP's capital in the course of 2007,
given the systemic importance of the Savings Banks group.
In addition, in the case of IXIS CIB, Moody's commented that
its long-term bank deposit and senior unsecured debt ratings --
also confirmed at Aa2 -- point to the strategic importance
of IXIS CIB for Natixis. This rating action reflects the planned
full integration of IXIS CIB within Natixis in the short-term and,
ultimately, the expected support of BFBP and CNCEP in respect of
IXIS CIB through Natixis if need be, until the full integration
of IXIS CIB within Natixis. Importantly, the Aa2 rating of
all existing IXIS CIB and related issuing vehicle debt outstanding guaranteed
by CNCEP is confirmed at Aa2. All new debt issued by IXIS CIB until
its full integration within Natixis will be guaranteed by CNCEP and,
as such, will be rated Aa2. Moreover, existing and
future debt issues of IXIS CIB and of related issuing vehicles guaranteed
by CDC or CNCEP continue to benefit from existing guarantee arrangements,
noted Moody's.
With regards to the long-term deposit and senior unsecured debt
ratings of Banque Palatine -- confirmed at Aa3 --
this rating level reflects Moody's appreciation of the role and strategic
importance of the bank for the Savings Banks group. While Banque
Palatine benefits from an affiliated status within the Savings Banks group,
Moody's believes that its strategic importance is lower than for other
affiliated group members that are rated. In addition, the
level of integration of Banque Palatine within the Savings Bank's group
remains low and is not expected to increase significantly in the short-to
medium-term.
Turning to the upgrade of CFF to Aa2 from Aa3, this rating action
is directly related to the confirmation at Aa2 of CNCEP's long-term
bank deposit and senior unsecured debt ratings. It reflects the
strategic role of CFF within CNCEP, its increasing operating integration
with the Savings Banks group, its leading position within the French
and the European covered bond market, as well as its status as affiliated
entity within the Savings Banks group.
The following ratings were upgraded, with stable outlooks:
- Natixis (formerly Natexis Banques Populaires): (i) long-term
deposit, senior unsecured debt, and Issuer ratings to Aa2
from Aa3; (ii) subordinated and junior subordinated debt ratings
to Aa3 from A1; and (iii) deeply subordinated debt rating to A1 from
A2
- Natexis Luxembourg SA: long-term bank deposit rating
to Aa2 from Aa3
- Natexis AMBS Company LLC, NBP Capital Trust I, NBP
Capital Trust III, and NBP Preferred Capital I, LLC:
preferred stock to A1 from A2
- Credit Foncier de France: (i) long-term bank deposit
and debt ratings to Aa2 from Aa3; and (ii) subordinated debt rating
to Aa3 from A1
The following ratings were confirmed, with stable outlooks:
- CNCEP: (i) Aa2 bank deposit and senior unsecured debt ratings,
(ii) Aa3 subordinated debt ratings, and (iii) A1 deeply subordinated
debt ratings
- IXIS CIB: (i) Aa2 bank deposit and senior unsecured debt
ratings, (ii) Aa3 subordinated debt ratings, and (iii) Aa2
and Aa3 debt ratings guaranteed by CNCEP
- IXIS Structured Products Limited: Aa2 senior unsecured
debt ratings guaranteed by CNCEP
- Banque Palatine: Aa3 long-term bank deposit rating
The following rating outlook was changed:
- Natixis: The outlook on Natixis' FSR of C was changed to
positive from stable.
Based in Paris, Natixis is the newly formed bank resulting from
the contribution of a number of financial institutions owned by CNCEP
to Natexis Banques Populaires. On a pro-forma basis,
Natixis had consolidated assets of Euro 437.9 billion at end-2005
and exhibited a net profit, group share, of Euro 1,662
million.
Based in Paris, CNCEP is the central entity and main debt issuing
vehicle of the French Savings Banks mutualist group. At year-end
2005, CNCEP had total consolidated assets of Euro 437.6 billion
(2004: Euro 387.8 billion) and posted a net profit group
share of Euro 1,103 million (2004: 885 million). The
Savings Banks group had total consolidated assets of Euro 594.1
billion (2004: 543.9 billion) and posted a consolidated net
profit group share of 2,071 million (2004: Euro 1,785
million) at end-2005.
Based in Paris, BFBP is the central entity of the Banque Populaire
mutualist group. At year-end 2005, BFBP had total
consolidated assets of Euro 173.3 billion (2004: Euro 145.4
billion) and it posted a net profit of Euro 544 million (2004: Euro
350 million). The Banque Populaire Group had total consolidated
assets of Euro 288.7 billion (2004: Euro 250.5 billion)
and posted a net profit group share of Euro 1,522 million (2004:
Euro 1,195 million) at end-2005.
London
Lynn Exton
Senior Vice President
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
London
Patricia Dambrine
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454