AAA covered bond ratings remain unchanged. The AA- rating affirmation follows the recent announcement of Crédit Foncier’s changing role within the BPCE Group from 2019 but continue to take account of unchanged Group solidarity mechanisms.

Scope Ratings today affirmed the AA- and the Stable Outlook for the Issuer Ratings of Crédit Foncier de France (CFF) and of Compagnie de Financement Foncier (CoFF), the wholly-owned subsidiary of CFF. Both the ratings and their outlook continue to mirror the Issuer Rating of AA- with Stable Outlook assigned by Scope to BPCE SA.

The AAA ratings and their Stable Outlook on the covered bonds issued by CoFF remain unchanged.

CFF is a wholly-owned subsidiary of BPCE SA, the central body of the two large French banking groups, the Banque Populaire (cooperative banks) and Caisses d’Epargne (savings banks). CoFF’s role is to finance the mortgage and public-sector lending of both its parent company and the BPCE group as a whole, through the issuance of covered bonds (obligations foncières).

On 26th June 2018 it was announced that from early 2019 new lending that currently flows through CFF will be conducted by other entities within the BPCE Group, which will create efficiency savings for the Group. CFF will continue to manage existing loans outstanding, and via CoFF will also continue to manage the Group’s refinancing activities. The integration of the activities and competencies of CFF should enable the BPCE Group to take advantage of certain expertise developed by CFF. From 2019, CFF’s balance sheet is expected to shrink gradually as existing loans roll off. CoFF will remain as one of the Group’s strategic subsidiaries, with its role refocused mainly on the refinancing of public sector assets for the Group.

CFF and CoFF will continue to carry the status of affiliates within the Group. This legal status continues to support the equalisation of their Issuer Ratings with those of BPCE SA.

Affirmed with a Stable Outlook are the following ratings:

• Issuer rating of Credit Foncier de France SA: AA-
• Issuer rating of Compagnie de Financement Foncier: AA-

The AAA ratings and their Stable Outlook on the covered bonds issued by Compagnie de Financement Foncier remain unchanged.