(CercleFinance.com) – Standard & amp; Poor’s said it had downgraded the long-term rating by one notch to BNPP, from ‘A +’ to ‘A’. The outlook is ‘stable’. The short-term rating of ‘A-1′ is confirmed.
‘This decision reflects that we integrate only over ALAC support notch in the long-term rating of the bank. Basically, this decision reflects our assessment of the BNPP’s financial policy that we consider more tense than its peers’ says Standard & amp; Poor’s.
BNP Paribas recently clarified its financial plans, we assessed the impact on the capitalization of the bank (S & amp ratio; P RAC) and its additional capacity to absorb losses (ALAC) in resolution to protect holders of senior notes
Standard & amp. Poor’s believes that the ALAC able to BNPP will not reach 5% by the end of 2018, threshold necessary to receive additional rating notch. ‘The ALAC trajectory BNPP is less robust than that of its peers, including European. In particular, the level of risk-adjusted capital of BNPP (S & amp ratio; P RAC) is relatively lower than that of its peers’.
As a result, Standard & amp; Poor’s integrates over ALAC support notch in the long-term rating of the bank.
‘The intrinsic creditworthiness’ a’ BNPP takes particular account of the gradual improvement of its capitalization and continued strong operational performance. We therefore uphold the ratings of hybrid and subordinated debt of the bank remain unchanged ‘.
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