Standard & amp; Poor’s said it had downgraded the long term rating for BNP Paribas from A + to A, with a stable outlook, believing that the French bank’s management of its own funds “more tense” than its competitors.
The rating agency considers as well as its level of capital, BNP Paribas has a capacity to absorb losses (ALAC measure) less strong than its competitors, including European.
“The level equity adjusted risk BNP Paribas is relatively lower than that of its peers, “wrote S & amp; P in a statement
.” We believe the ALAC measuring BNP Paribas will not reach 5% at the end of 2018, threshold necessary to receive additional rating notch. “
According to estimates by the agency, the ALAC able to BNP Paribas stood late 2015 from 1% 1.5%.
BNP Paribas was not immediately available to comment on this decision.
at the end of 2015, BNP Paribas posted a ratio of financial solvency (Common Equity Tier 1) of 10.9% under Basel III, up 60 basis points from the end of 2014.
in December the bank had indicated consider different options for First Hawaiian bank to in particular to strengthen its financial solvency and meet the new prudential requirements of regulators. Sources had indicated in January Reuters the Exchange implementation process of this subsidiary was initiated
S & amp;. P confirms the short-term rating “A-1″ of BNP Paribas, as well as those . of its hybrid and subordinated debt
the long-term rating of A + from the bank had been placed in December under negative watch by S & amp; P
for comparison, Credit. agricultural, Societe Generale and BPCE, parent company of Natixis, are also rated “A” with a stable outlook by S & amp; P, and short-term debt is rated “A-1″ (Reuters)
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