New analysis on Crédit Mutuel
In addition to the A+ Issuer Rating, Scope assigns a senior unsecured (non-MREL eligible) debt rating of A+, a senior non-preferred debt rating of A and a short-term debt rating of S-1+, all with Stable Outlook.
The ratings are based on the overall stability and predictability of Crédit Mutuel Alliance Fédérale (CMAF), the dominant grouping within the Crédit Mutuel Group (CM), one of France’s large retail banking and financial services networks. CMAF’s reassuring credit fundamentals are also a key driver for the ratings at their current high level. We have assigned ratings to BFCM as it has been delegated capital markets functions for CMAF, which represents the major part of the CM group.
Scope’s ratings also consider existing challenges to the entire CM group’s operational and strategic cohesion, in the form of Crédit Mutuel Arkea’s strategic evolution as it attempts to break away from the rest of the group. However, this forms a relatively small part of the overall CM Group compared to CMAF, and although its potential exit from the Group represents an area of uncertainty, we do not see its activities or potential exit from the CM Group as representing an existential threat to CMAF. BFCM does not benefit directly from the type of solidarity mechanism that exists between CMAF’s mutual banks within their groupings. However, we consider it improbable that the CMAF grouping would fail to support its treasury and capital markets vehicle in need.