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Fitch Affirms Morocco's BMCI at 'AAA(mar)'; Outlook Stable
July 5, 2017 / 4:11 PM / 5 months ago

Fitch Affirms Morocco's BMCI at 'AAA(mar)'; Outlook Stable

(The following statement was released by the rating agency) LONDON, July 05 (Fitch) Fitch Ratings has affirmed Morocco-based Banque Marocaine pour le Commerce et l'Industrie's (BMCI) National Long-Term Rating at 'AAA(mar)' with a Stable Outlook and National Short-Term Rating at 'F1+(mar)'. BMCI's Support Rating is affirmed at '2'. KEY RATING DRIVERS NATIONAL AND SUPPORT RATINGS BMCI's ratings are based on Fitch's opinion of a high probability of support from the bank's majority shareholder, BNP Paribas (BNPP; A+/Stable), if required. This reflects BNPP's strong ability (as indicated by the bank's rating) and willingness to provide support to BMCI. BMCI's Support Rating is constrained by Morocco's 'BBB' Country Ceiling. Fitch believes that BNPP has ample resources to support BMCI, whose consolidated assets represent less than 7% of group equity. BMCI is BNPP's largest African subsidiary. The bank controls a 6% domestic market share in loans and, in our view, it is strategically important to support BNPP's banking franchise in the Mediterranean. BNPP controls 66.7% of BMCI. The Moroccan subsidiary is highly integrated into BNPP, sharing branding, risk systems, internal processes and IT platforms. Its senior management is appointed by BNPP. BMCI has not required extraordinary support from BNPP. Ordinary support is provided on a day-to-day basis, notably in the form of a counter guarantee, which allows BMCI to meet regulatory requirements on large exposures. BNPP also provides foreign currency funding requirements, if required. RATING SENSITIVITIES NATIONAL AND SUPPROT RATINGS A downgrade of BMCI's Support and National Ratings may result from a reduction in BNPP's ownership stake in BMCI. A reduction in the subsidiary's strategic importance to the parent or weaker integration could also result in a rating downgrade. BMCI's ratings are also sensitive to a downgrade of BNPP's Long-Term Issuer Default Rating (IDR). BNPP's IDR would have to be downgraded by at least five notches before the Support Rating would be impacted and by at least four notches in the case of the National Rating. In our view, these scenarios are highly unlikely. BMCI's Support Rating would also be downgraded if Morocco's Country Ceiling is revised downwards by at least two notches. An upgrade of BMCI's Support Rating would require a two-notch upwards revision of the Country Ceiling. Contact: Primary Analyst Janine Dow Senior Director, Financial Institutions +44 203 530 1464 Fitch ratings Ltd 30 North Colonnade London E14 5GN Secondary Analyst Nicolas Charreyron Analyst, Financial Institutions + 971 4424 1208 Committee Chairperson Alexander Danilov Senior Director, Financial institutions +7 495 956 2408 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: Additional information is available on Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here National Scale Ratings Criteria (pub. 07 Mar 2017) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here Solicitation Status here#solicitation Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. 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Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. 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