The Issuer Rating of AA- for BNPP reflects our view that the Group, which ranks as the euro area’s largest banking group by total assets, continues to preserve reassuring, stable credit fundamentals, underpinned by a relatively well-balanced universal-bank business model.

Besides being one of the dominant players in the French banking market, BNPP has over the years built or acquired retail and commercial bank franchises – among them on the US West Coast, and in Italy and Belgium. Its wholesale and investment banking businesses remain substantial, but the Group has been able to reduce risk and scale back during and after the crisis without fundamentally altering its business model. BNPP’s earning profile is also supported by substantial consumer finance and insurance businesses.

BNPP displays reassuring prudential and financial metrics, with asset quality and ROAA each on an improving trend in FY17.

We are also confident that internal controls and risk management, including business conduct across the group, have been reinforced in the aftermath of the financially painful settlement with US authorities in 2014. The remediation plan agreed as a result remains a key focus, but is nearing completion.
 

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