Moody's on May 29 upgraded PSA Banque France SA's long-term bank deposit, senior unsecured debt and issuer ratings to A3 from Baa1, with stable outlooks.
Moody's also upgraded the company's baseline credit assessment to "baa3" from "ba1," adjusted baseline credit assessment to "baa2" from "baa3," long- and short-term counterparty risk ratings to A2/Prime-1 from A3/Prime-2 and long- and short-term counterparty risk assessments to A2(cr)/Prime-1(cr) from A3(cr)/Prime-2(cr).
The rating agency also affirmed the Prime-2 short-term bank deposit and issuer ratings of PSA Banque France, which is a 50/50 joint venture between Peugeot unit Banque PSA Finance SA and Banco Santander SA unit Santander Consumer Finance SA.
Moody's said the French firm's long-term bank deposit, senior unsecured debt and issuer ratings are obtained from its baseline credit assessment, a one-notch uplift resulting from a moderate probability of support from Santander Consumer Finance and ultimately from Banco Santander and two notches of uplift from the agency's advanced loss-given failure analysis.
PSA Banque France's baseline credit assessment reflects its sound asset quality, despite geographical and sector concentration, adequate capitalization and good profitability, Moody's noted.
The stable outlook is driven by the agency's view that there will be no significant change in PSA Banque France's fundamentals or development in its liability structure that could affect its ratings in the future.