Tweet
Bonjour tout le monde
Rating Action: Moody's concludes review on Credit du Maroc's deposit ratings
Global Credit Research - 12 Jun 2015
Actions follow conclusion of methodology-related review
Limassol, June 12, 2015 -- Moody's Investors Service has today downgraded to Ba1/Not Prime from Baa3/P-3 the local-currency deposit ratings of Crédit du Maroc (CdM), aligning the ratings with the Ba1 rating of the government of Morocco. Today's downgrades conclude the review initiated on 17 March 2015 (see press release at https://www.moodys.com/research/Mood...ngs--PR_321005) following the publication on 16 March of Moody's revised bank rating methodology. Concurrently Moody's has affirmed CdM's ba3 baseline credit assessment (BCA), affirmed its ba1 adjusted BCA and affirmed its Ba2/Not-Prime foreign-currency deposit ratings. The long-term local-currency deposit rating now has a stable outlook.
In light of the revised bank rating methodology, Moody's rating actions on CdM reflect the following considerations: (1) Moody's view of Morocco's "Moderate-" macro profile; (2) the recent deterioration of profitability and asset quality metrics, which we expect will stabilise in the medium term and are moderated by improving capital buffers and stable funding profile; (3) our assessment of a high likelihood of affiliate support in the event of need from its French parent bank -- Crédit Agricole S.A. (CASA, deposits A2 positive, ba1 BCA); (4) the change in Moody's view that the capacity of the government to provide support is limited to the government's own creditworthiness, as implied by its bond rating, rather than the previous expectation that banks could benefit from additional support through other policy tools.
Moody's has also assigned Counterparty Risk Assessment (CR Assessment) of Baa3(cr)/P-3(cr) to CdM, in line with its new bank rating methodology
Rating Action: Moody's concludes review on Credit du Maroc's deposit ratings
Global Credit Research - 12 Jun 2015
Actions follow conclusion of methodology-related review
Limassol, June 12, 2015 -- Moody's Investors Service has today downgraded to Ba1/Not Prime from Baa3/P-3 the local-currency deposit ratings of Crédit du Maroc (CdM), aligning the ratings with the Ba1 rating of the government of Morocco. Today's downgrades conclude the review initiated on 17 March 2015 (see press release at https://www.moodys.com/research/Mood...ngs--PR_321005) following the publication on 16 March of Moody's revised bank rating methodology. Concurrently Moody's has affirmed CdM's ba3 baseline credit assessment (BCA), affirmed its ba1 adjusted BCA and affirmed its Ba2/Not-Prime foreign-currency deposit ratings. The long-term local-currency deposit rating now has a stable outlook.
In light of the revised bank rating methodology, Moody's rating actions on CdM reflect the following considerations: (1) Moody's view of Morocco's "Moderate-" macro profile; (2) the recent deterioration of profitability and asset quality metrics, which we expect will stabilise in the medium term and are moderated by improving capital buffers and stable funding profile; (3) our assessment of a high likelihood of affiliate support in the event of need from its French parent bank -- Crédit Agricole S.A. (CASA, deposits A2 positive, ba1 BCA); (4) the change in Moody's view that the capacity of the government to provide support is limited to the government's own creditworthiness, as implied by its bond rating, rather than the previous expectation that banks could benefit from additional support through other policy tools.
Moody's has also assigned Counterparty Risk Assessment (CR Assessment) of Baa3(cr)/P-3(cr) to CdM, in line with its new bank rating methodology
Commentaire