France

Dexia Crédit Local today (Tuesday) found its second visit to the government-guaranteed market easier than its first and is set to price its new issue this afternoon. Meanwhile Lloyds TSB found demand from unexpected areas in sterling and OeVAG wrapped up its four year euro.

Moody’s yesterday (Monday) downgraded HSBC Bank plc’s debt and deposit ratings from Aa1 to Aa2 and its financial strength rating from B to C+ with negative outlooks.

Dexia Crédit Local is hoping to win over investors to its three-way guaranteed paper when it comes to market tomorrow (Tuesday), while OeVAG has today (Monday) been negotiating the differences in opinion on Austrian spreads.

Dexia is understood to be committed to maintaining its Pfandbrief issuance through Dexia Kommunalbank despite the retrenchment into core markets that the group is planning as a result of its problems.

Moody’s on Friday changed the outlook from stable to negative on Caisse Centrale du Crédit Immobilier de France (3CIF), which is rated A1.

Compagnie de Financement Foncier printed a Sfr350m (Eu232m) four year obligations foncières issue yesterday (Tuesday), its first public deal of the year, excluding two taps, and its largest public deal since June 2008, according to data from Dealogic.

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.