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Fitch Rates 3CIF's Guaranteed Notes at 'AAA'/'F1+'
March 7, 2013 / 12:26 PM / in 5 years

Fitch Rates 3CIF's Guaranteed Notes at 'AAA'/'F1+'

March 7 (Reuters) - (The following statement was released by the rating agency) Fitch Ratings has assigned Caisse Centrale du Credit Immobilier de France’s (3CIF) state-guaranteed issues a Long-Term Rating of ‘AAA’ and a Short-Term Rating of ‘F1+'. These issues will be made under the bank’s French Long-Term Bons a Moyen Terme Negociables (BMTN) and Short-Term Certificats de Depots (CD) programmes. 3CIF is Credit Immobilier de France Development’s (CIFD; ‘A’/Stable/‘f’) issuing vehicle for senior unsecured issues. RATING DRIVERS These ratings are based on Fitch’s belief that the French state (‘AAA’/Negative) will support debt issued under the programmes, if required. The French authorities have been involved in helping CIFD refinance itself (for example providing liquidity support through the Emergency Liquidity Assistance programme) and find a durable solution. Fitch notes that the French state has provided a guarantee for payment in full of the principal and interest, if any, on all notes issued under the above mentioned CD and BMTN programmes; this guarantee is expressed to be unconditional and irrevocable under French law. While the combined amount of the guaranteed programmes is EUR11bn, Fitch understands the guarantee will be limited to EUR7bn. If cumulated issues under these two programmes were to exceed EUR7bn, then Fitch would give a rating of ‘A’/‘F1’ to the issues above the guarantee limit, in line with CIFD’s unguaranteed senior unsecured debt ratings. CIFD required liquidity support from the French state in H212, following its inability to access wholesale markets, its main source of funding. On 1 September, the French state announced it planned to provide a guarantee to the bank. The principles and conditions of this guarantee were approved by both the French parliament in December 2012 and the European Commission in February 2013. RATING SENSITIVITIES Any decrease in the ability of France (as measured by its rating) to support debt issued under 3CIF guaranteed programmes would lead to a downgrade. France’s Long-Term Issuer Default Rating of ‘AAA’ is on Negative Outlook. In addition, Fitch expects that the French state remains committed to support CIFD during its run down process.

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