trending Market Intelligence /marketintelligence/en/news-insights/trending/yh8wsdqwtcky5vm0aa5kxa2 content esgSubNav
In This List

Fitch publishes Crédit Mutuel Arkéa's ratings


Bank failures: The importance of liquidity and funding data


Staying Strong in Volatile Markets: How Banks Can Overcome Challenges to Funding and Lending


Silicon Valley Bank Uncovering Regional Bank Stress with Equity Driven Credit Models

Case Study

A Scorecard Approach Helps a Bank Assess Credit Risks with Smaller Companies

Fitch publishes Crédit Mutuel Arkéa's ratings

Fitch Ratings on Oct. 16 published Crédit Mutuel Arkéa SACC's A-/F2 long- and short-term issuer default ratings, with a stable outlook on the long-term rating.

The rating agency also published the French lender's "a-" viability rating, 5 support rating and No Floor support rating floor.

The agency said Crédit Mutuel Arkéa's issuer default and viability ratings mainly reflect its profile as a midsize bancassurance company operating in France, its moderate yet resilient earnings, sound asset quality, solid capitalization and its stable funding and liquidity profile.

The stable outlook reflects Fitch's expectation that Crédit Mutuel Arkéa will maintain a substantial liquidity buffer, sound asset quality and a fairly low risk appetite, as well as continue to improve capitalization, according to the agency.

The bank's support rating and support rating floor, meanwhile, reflect Fitch's view that the lender cannot rely upon sovereign support due to legislative, regulatory and policy initiatives significantly reducing the likelihood of sovereign support for European commercial banks in general.

Fitch noted that the assessment is based on the assumption that the bank's company and financial profile, particularly its equity base, will be unaffected by a potential exit from parent Crédit Mutuel Group, adding that execution risks from a protracted or complex exit from the group will be rating-negative for the bank.

Fitch also assigned A-/F2 long- and short-term issuer default ratings to Crédit Mutuel Arkéa SACCV, the central institution and sole debt issuer of the bank. The outlook on the long-term rating is stable.