France

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.

Crédit Agricole is discussing a possible debut covered bond with investors this (Tuesday) morning. However, other issuers are said to have potentially been deterred from proceeding with jumbos by the deterioration in the market around the weekend.

Moody’s on Friday changed the outlook on BNP Paribas’ rating from stable to negative.

Erste Bank will this (Friday) afternoon price the first Austrian guaranteed bank deal, two days after agreeing a debt issuance programme with the country’s Finance Ministry. Meanwhile a new, unique government-backed name could emerge next week.

CIF Euromortgage followed up its Eu230m tap on Tuesday with a Eu310m increase to its Eu1.1bn 4% October 2016 obligations foncières yesterday (Wednesday) to satisfy demand for longer dated paper.

CIF Euromortgage is increasing its Eu1.03bn 4.5% December 2013 obligations foncières this (Tuesday) afternoon by Eu200m-Eu300m.

BNP Paribas wrapped up the first jumbo covered bond in four months yesterday (Thursday) afternoon, a Eu1.5bn five year at 110bp over mid-swaps. The deal affirmed the relevance of covered bonds in the post-crisis capital markets and bankers are hopeful that it will provide a cornerstone on which to build the asset class’s recovery.