DBRS on May 29 confirmed Société Générale SA's A (high) long-term issuer, deposit and senior debt ratings and its AA long-term critical obligations rating and changed the trends on the ratings to positive from stable.
The rating agency said the trend changes reflect improvements in the French banking group's risk profile, as shown by a steady drop of its nonperforming loans ratio. Increased portfolio de-risking, tightened origination standards, a general economic recovery in SocGen's geographic franchise as well as positive turnarounds in its Russian and Romanian markets have contributed in the group's positive asset quality over the past year, DBRS noted.
DBRS said it expects that SocGen to boost its capital buffers and loss-absorbing debt in the medium term.
The agency also confirmed the group's R-1 (middle) short-term issuer, debt and deposit ratings and its R-1 (high) short-term critical obligations rating, with stable trends.
