The ratings on Banque Federative du Credit Mutuel SA (BFCM) are based on the strong and stable franchise of the entire Credit Mutuel Group, one of France’s large retail banking and financial services networks. The group also maintains a low risk balance sheet and reassuring prudential metrics. As of end-2015, the group’s fully loaded CET1 and leverage ratios were 15.8% and 6.2%, respectively.

As well, the ratings take into account the existing challenges to the group’s operational and strategic cohesion, notably the dynamics of Credit Mutual Arkea’s strategic evolution. Scope takes the view that divergent strategies within the group do not necessarily represent a structural weakness but an area of relative uncertainty; this holds to the extent that neither diverging party engages in risk activities which are incompatible with the group’s conservative culture.

Download the updated rating report on BFCM