Scope Ratings GmbH (Scope) monitors and reviews its credit ratings on an ongoing basis and at least annually, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations.

Scope performs monitoring reviews to determine whether material changes and/or changes in macroeconomic or financial market conditions could have an impact on the credit ratings. Scope considers all available and relevant information when undertaking the monitoring review.

Monitoring reviews are conducted by performing a peer comparison, benchmarking against the rating-change drivers, and/or reviewing the credit ratings’ performance over time, as deemed appropriate by the Lead Analyst or Analytical Team Head, in addition to an assessment of all aspects of the relevant methodology/ies, including key rating assumptions and model(s). Scope publicly announces the completion of each monitoring review on its website. 

Scope completed the monitoring review on Crédit Foncier de France (CFF) on 13 September 2022.

The following ratings were reviewed:

• Crédit Foncier de France’s issuer rating of A+/Stable and senior unsecured debt rating of A+/Stable
   
• Compagnie de Financement Foncier (CoFF)’s issuer rating of A+/Stable

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

The ratings of CFF and its wholly owned subsidiary CoFF reflect the credit quality of CFF’s parent, BPCE S.A. CFF and CoFF have the status of affiliates within Groupe BPCE and therefore benefit from the intra-group solidarity mechanism under French law.

The A+ issuer ratings on CFF and CoFF reflect the following credit considerations:

• CFF and CoFF benefit from the strong internal solidarity system within Groupe BPCE. Any change in the credit quality of BPCE S.A., the central body of Groupe BPCE, entails a similar rating impact for CFF and CoFF. In Scope’s opinion, the strength of intra-group support is ultimately sensitive to the group’s ability to improve its structural efficiency.
   
• The importance of CFF within Groupe BPCE has decreased following the redeployment of some activities across the group. However, CoFF continues to operate as a refinancing tool for the group and remains a strategically important issuer of covered bonds for the group.
   
• Risk management is fully aligned with Groupe BPCE’s framework, allowing creditors of CFF and CoFF to benefit from the group’s strong risk control culture.

Outlook – rating-change drivers

The Outlook is Stable, reflecting Scope’s view that CFF will retain its strategic importance for the group’s funding strategy and its access to the intra-group solidarity mechanisms.

Scope would downgrade the rating in case of:

• A weakening of CFF’s and CoFF’s strategic importance
   
• A downgrade of BPCE S.A.’s issuer rating

Scope would upgrade the rating in case of:

• An upgrade of BPCE S.A.’s issuer rating

Overview of CFF’s rating construct

Operating environment: not applicable

Business model: not applicable

Initial mapping refinement: not applicable

Initial mapping: not applicable

Long-term sustainability: not applicable

Adjusted anchor: not applicable

Earnings capacity and risk exposures: not applicable

Financial viability management: not applicable

Additional rating factors: not applicable

Standalone assessment: not applicable

External support: ratings aligned with the parent

Issuer rating: A+

The methodologies applicable for the reviewed ratings and rating Outlooks (Financial Institutions Rating Methodology, 28 January 2022) are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies..
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Nicolas Hardy, Executive Director

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