France

BNP Paribas is setting up a Eu15bn public sector obligations foncières programme that will run alongside the BNP Paribas Covered Bonds programme that was set up outside France’s dedicated legal framework.

Crédit Mutuel Arkéa has launched its debut covered bond transaction.

Moody’s yesterday (Wednesday) concluded a review for possible downgrade of Crédit Agricole and Calyon’s ratings that was initiated in August.

Fitch yesterday (Tuesday) placed on negative review the A+ long term issuer default ratings of Caisse Nationale des Caisses d'Epargne et de Prévoyance, Banque Fédérale des Banques Populaire, and Crédit Foncier de France.

CIF Euromortgage has added Eu70m to its 4% October 2016 issue, continuing France’s domination of jumbo supply through taps and new deals in January into February. Meanwhile the government-guaranteed sector in euros was subdued.

Moody’s today (Monday) affirmed the Aa3 rating of Crédit Foncier de France, but downgraded the bank financial strength rating from C to D+, equivalent to a baseline credit assessment of Baa3.

Standard & Poor's yesterday (Wednesday) downgraded BNP Paribas’ rating from AA+ to AA, on negative outlook. The new rating is likely to remain until there are “clear signs that the worst is over”, said the agency.

Moody’s on Friday concluded its review of Dexia Municipal Agency's obligations foncières by affirming their Aaa rating, with greater transparency forthcoming from both the issuer and the rating agency.

Laurent Vernadat, who was in charge of covered bond syndication at Calyon in London, has left the French bank.

Crédit Agricole executed its inaugural jumbo covered bond yesterday (Wednesday), a Eu1.25bn seven year deal priced at 135bp over mid-swaps. The deal is only the second jumbo since 8 September and marked a rare visit, from any type of issuer, to the seven year maturity.

Crédit Agricole is in the market today (Wednesday) with its inaugural jumbo covered bond and only the second from any issuer since 8 September. It has been building books on the seven year deal at guidance of 125bp-135bp over mid-swaps.

Moody’s yesterday (Monday) downgraded Dexia Crédit Local from Aa3 to A1 and assigned a negative outlook to the rating.