TEXT-Fitch drops CIBCA's rating; rates Credit Agricole Bank 'B'/stable
Fitch Ratings has affirmed and withdrawn Ukraine-based PJSC Corporate Investment Bank Credit Agricole's (CIBCA) ratings, including its Long-term foreign currency Issuer Default Rating (IDR) of 'B'. At the same time, Fitch has assigned Ukraine-based PJSC Credit Agricole Bank (CAB) a Long-term foreign currency IDR of 'B' with a Stable Outlook and a Viability Rating (VR) of 'b'.
CIBCA's ratings have been affirmed and withdrawn as the entity no longer exists following its merger into CAB on 19 November 2012.
CAB's IDRs, National and Support Ratings are underpinned by Fitch's view of the probability of support from the bank's ultimate parent, Credit Agricole S.A. (CASA; 'A+'/Negative). In assessing potential support, Fitch takes into account CASA's full ownership of CAB, the common branding, considerable management integration, the track record of previous capital and liquidity support, and the relatively small size of the subsidiary. At the same time, Fitch classifies CAB as a subsidiary of 'limited importance' to CASA, given that Ukraine is not a target market for the parent and CASA does not have a significant franchise in emerging Europe as a whole.
Ukraine's Country Ceiling ('B'), which reflects transfer and convertibility risks, limits the extent to which support from CASA can be factored into CAB's Long-term foreign currency IDR, while its Long-term local currency IDR of 'B+' also takes into account Ukrainian country risks.