Fitch Ratings assigns a long-term A- rating with a stable outlook to Arkéa group
Brest, 16 th October 2018 – The international rating agency Fitch Ratings rates Arkéa group for the first time and assigns a A- rating with a stable outlook. This rating
confirms the financial strength of Arkéa group and positions it favourably at the European level.
Fitch Ratings, commissioned by Arkéa group, today released the results of their analysis. A Long-Term A- rating with a stable outlook and a Short-Term F2 rating were assigned to Arkéa group.
Fitch’s ratings reflect the strength of Arkéa group’s financial fundamentals, with a « solid capitalisation, sound asset quality, a modest risk appetite, stable funding and liquidity profile ». In the analysis, Fitch Ratings point out that Arkéa group offers a « wide range of banking as well as insurance (life and non-life) and asset management products » which allow it to generate results, which are « resilient to the current low-interest-rate environment ».
Fitch Ratings rate Arkéa group independently of Crédit Mutuel group, as stated in their press release: « Our rating does not reflect CM Arkea’s current membership in Credit Mutuel as CM Arkea is following a strategy to become independent from Credit Mutuel ».
Fitch Ratings also assigned ratings to Arkéa group debt instruments: A- for Senior Preferred, Senior Non-Preferred debt and NEU MTN, as well as BBB+ for Tier 2 subordinated debt and F2 for NEU CP.
Furthermore, the following bond issues are now rated by Fitch Ratings:
Senior Preferred and Senior Non-Preferred bonds (A-)
Crédit Mutuel Arkéa - 26/01/2023 - FR0012467520
Crédit Mutuel Arkéa - 05/10/2023 - FR0013370137
Crédit Mutuel Arkéa - 31/05/2024 - FR0013258936
Tier 2 subordinated bonds (BBB+)
Crédit Mutuel Arkéa - 01/06/2026 - FR0013173028
Crédit Mutuel Arkéa - 09/02/2029 - FR0013236544
Crédit Mutuel Arkéa - 25/10/2029 - FR0013291556
Anne Le Goff, Associate Executive Officer, stated: « Fitch’s ratings confirm the financial strength of Arkéa group and underline the relevance and effectiveness of its business model and its particularly diversified development strategy. With a long-term A- rating, Arkéa group is one of the strongest major banking players in Europe. »
These ratings complement those assigned by Moody's Investors Service and S&P Global Ratings.
Fitch Ratings' press release is available on the rating agency's website: www.fitchratings.com
Market statement - 29th August 2018
Provision of the update of the 2017 registration document and of the update of the 2017 registration document constituting a half-yearly financial report
The update of the 2017 registration document and the update of the 2017 registration document constituting a half-yearly financial report, including Crédit Mutuel ARKEA’s results as at 30 June 2018, were respectively filed today with the Autorité des Marchés Financiers and with the Commission de Surveillance du Secteur Financier.
These documents are now available on the Crédit Mutuel ARKEA group’s corporate website.
Crédit Mutuel ARKEA would like to draw investors’ attention on the fact that these documents contain information on the risks and uncertainties related to the unilateral disaffiliation of Groupe Crédit Mutuel ARKEA from Crédit Mutuel and to the complexity of the current situation.
The Board of Directors of the Confédération Nationale du Crédit Mutuel ("CNCM") met on Friday April 20th. An amended version of the articles of association of the CNCM was submitted to the Board of Directors, which was convened exceptionally. This new version, which could be approved on May 16th, would enable the CNCM to take control of Crédit Mutuel Arkéa ("Arkéa") by removing its senior management.
The Board of Directors of Arkéa therefore decided on April 24th to add a new resolution to the agenda of its General Meeting, also scheduled for May 16th. The new resolution suggests that the Chairmen of local savings banks grant a mandate to Arkéa’s Chairman, its executive senior management and to the Board of Directors itself to take the decision, in the event of a recorded aggression, to disaffiliate unilaterally from the CNCM. This right of exit would result in exercising the right of withdrawal entitled to all members of a non-profit association (“Association loi 1901”) that is the CNCM.
On 23rd March 2018, Moody’s, assessing Crédit Mutuel Arkéa’s rating, issued a press release and downgraded by one notch (from A3 to Baa1) Crédit Mutuel Arkéa’s subordinated and senior non-preferred notes. Moody’s justify this downgrade by the lower standalone financial strength of "Groupe Crédit Mutuel" .
Market statement - 16th March 2018
On 17th Januray 2018, Crédit Mutuel Arkéa’s Board of Directors adopted a resolution aiming at proposing to the local banks of the Crédit Mutuel federations of Bretagne, Sud-Ouest and Massif Central, an orientation vote on an independency project of the Group (the “Project”). Through the vote of its Board of Directors, each local savings bank is fully free to approve or reject the Project: - If approved, the local savings bank would remain a member of a fully independent Arkéa group; - If rejected, the local savings bank would have the option to join, during the Project’s implementation phase, one of the entities constituting the Crédit Mutuel group and put under the authority of the Confédération, in accordance with the articles of association of the Confédération Nationale du Crédit Mutuel. The resolution, which will be submitted to the vote of the Boards of Directors of the local savings banks affiliated to the Arkéa Group from 23rd March to 14th April 14, 2018 is: « The Board of Directors of the local savings bank approves, as far as the local savings bank is concerned, the project of undertaking all actions so that Crédit Mutuel Arkéa becomes an independent cooperative and mutual banking group, entirely separated from the rest of Crédit Mutuel. The exit from the Confédération Nationale du Crédit Mutuel would have as consequences a complete freedom of development, the reaffirmation of a mechanism of solidarity to the perimeter of the Arkéa Group and the adoption of a denomination and commercial brands without the mention “Crédit Mutuel”. The new denomination as well as the commercial brands would clearly reaffirm our cooperative and mutual status and the territorial anchorage. » Following these votes, the governance bodies of Crédit Mutuel Arkéa will draw the consequences to develop, if need be, a finalised project, in accordance with applicable legal, regulatory and contractual provisions.
Market statement - 8th February 2018
Crédit Mutuel ARKEA would like to inform its investors that the following bonds now benefit from a A3 rating from Moody’s:
CMARK 1 1/4 05/31/24 FR0013258936
CMARK 3 1/4 06/01/26 FR0013173028
CMARK 3 1/2 02/09/29 FR0013236544
CMARK 1 7/8 10/25/29 FR0013291556
For the record, Moody’s started rating Crédit Mutuel Arkéa’s EMTN programme in November 2017.
Market statement - 26th January 2018
Crédit Mutuel ARKEA takes note of the publications made this week by Moody's and Standard & Poor's, the two rating agencies, in connection with the project of consulting local branches on the creation of a cooperative and mutual banking group, distinct from Crédit Mutuel. The current ratings continue to apply at this stage despite the consultation.
Crédit Mutuel ARKEA would like to remind investors of the group's strong growth trajectory since 2008 and the quality of its fundamentals, with solvency levels exceeding regulatory requirements.
Crédit Mutuel ARKEA has already started work to identify actions to support its current ratings, so that they reflect the relevance of its business strategies and remain attractive to investors.
Market statement - January 15, 2018
Crédit Mutuel Arkéa confirms that its Board of Directors will be asked on Wednesday 17th January to give a mandate to management to undertake all actions necessary to preserve Crédit Mutuel Arkéa’s entrepreneurial freedom, by obtaining the status of an independent cooperative and mutual banking group, distinct from the rest of Crédit Mutuel.
The Board of Directors will also deliberate on the start of a voting process at the Federation and local branches level. The Board of Directors of the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations will be held no later than 19th January. The Crédit Mutuel du Massif Central federation will also be invited to deliberate on this process.
Following the meetings of the Boards of Directors of Crédit Mutuel Arkéa and of the federations of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, further information will be communicated.
Market statement - October 13, 2014
On October 6, 2014, Crédit Mutuel Arkéa filed a complaint with the Paris Public Prosecutor for illegal acquisition of interests, breach of trust and deception regarding quality of services, concerning the manner in which the CNCM (Confédération nationale du Crédit Mutuel) performs its function as a central body, which function is conferred upon it by the French Monetary and Financial Code (Code monétaire et financier).
Firstly, the complaint alleges the existence of conflict-of-interest situations that prevent the CNCM from providing proper independent administrative, technical and financial supervision, given that its executive officers hold interests in structures that the CNCM is supposed to supervise.
Secondly, the complaint also alleges private use of the ‘Crédit Mutuel’ name and certification mark by entities that are not mutual structures, whereas the CNCM is supposed to ensure that it is used only by the Crédit Mutuel banks (les caisses) in accordance with objective conditions of use, and that the CNCM’s executive officers hold interests in the said entities.
This complaint was filed following a referral to the French Prudential Supervision and Resolution Authority (l'Autorité de Contrôle Prudentiel et de Résolution) by Crédit Mutuel Arkéa concerning the same matters, and an inspection by that authority focusing on the ‘operating methods and conditions under which the CNCM performs its function as a central body’.
Market statement - October 6, 2014
In view of an ongoing conflict of interests within its central body, the Confédération Nationale du Crédit Mutuel, earlier today Crédit Mutuel Arkéa referred a number of breaches to the French Competition Authority (l'Autorité de la Concurrence) and the Public Prosecutor at the Paris District Court (le Tribunal de grande instance). The matter has also been referred to the French Prudential Supervision and Resolution Authority (l'Autorité de Contrôle Prudentiel et de Résolution).