Moody’s extends Credit Mutuel Arkea review

Moody's Investors Service said it extended its review of the ratings of Credit Mutuel Arkea initiated on Jan. 24.

The Aa3 long-term bank deposit, issuer and senior unsecured debt ratings, the provisional Aa3 senior unsecured MTN ratings, the Baa1 junior senior unsecured debt and subordinated debt ratings, the provisional Baa1 junior senior unsecured MTN and subordinated MTN ratings, the Prime-1 short-term issuer and provisional Prime-1 short-term program ratings, the a3 adjusted baseline credit assessment, the Aa2 counterparty risk ratings and the Aa2(cr) counterparty risk assessment remain on review for downgrade.

On 29 June, the bank disclosed the legal framework it intends to adopt after the separation from Groupe Credit Mutuel.

Moody's said that in its view, the likelihood of Credit Mutuel Arkea becoming independent depends on whether its management will garner similar support for its newly proposed structure as it has received thus far from the boards of the local banks.

For this reason, the agency said it will likely only conclude the review once the votes have taken place.

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