TEXT-Fitch revises Credit Agricole SA outlook

(The following statement was released by the rating agency)
June 12 - Fitch Ratings has downgraded Credit Agricole's (CA)
Viability Rating (VR) to 'a' from 'a+' and affirmed its Long-term Issuer
Default Rating (IDR) at 'A+'. The Outlook has been revised to Negative from
Stable. A full list of rating actions is at the end of this comment.

The downgrade of the VR reflects CA's modest earnings, only adequate capital and
the risks linked to the bank's exposure to Southern Europe, in particular at the
troubled Greek subsidiary (Emporiki Bank of Greece). However, the VR continues
to take into account CA's strong French retail franchise, good overall asset
quality, limited market risk and solid funding base. The VR is sensitive to an
unexpected deterioration in earnings or weakening of capital ratios.

Fitch expects CA's operating profitability to remain subdued in the short-term
given lower revenues as a result of deleveraging and continued high loan
impairment charges (well above pre-crisis levels), especially at Emporiki. This
means that CA's loss absorption capacity and capital generation is likely to be
weaker.

Fitch considers CA's capital as adequate, but its Fitch Core Capital ratio is
low compared with peers'. CA's Fitch Core Capital ratio is lower than the Core
Tier 1 regulatory ratio largely due to the deduction of the net asset value of
the insurance subsidiary from Fitch Core Capital. Fitch notes that CA is
increasing its capital ratios and is targeting a fully loaded Basel III common
equity Tier 1 ratio of 10% by end-2013. The agency would welcome higher capital
ratios given the group's modest internal capital generation and the remaining
risks in the Greek subsidiary, where loan impairment charges are still high and
a eurozone exit scenario can not be ruled out. CA's net funded exposure to
Emporiki, which was roughly EUR5bn at end-Q112, would be at risk in case of
redenomination.

CA's Long-Term IDR is no longer based on its VR and is now at its Support Rating
Floor reflecting potential support from France ('AAA'/Negative), if required.
The Negative Outlook on CA's Long-term IDR reflects that of France's Long-term
IDR. The bank's Long-and Short-term IDRs, Support Rating Floor and Support
Rating would be sensitive to a change in the French sovereign rating. A
downgrade of France's Long-term IDR by one notch (to 'AA+') would lead to a
downgrade of CA's Support Rating Floor and Long-term IDRs to 'A' and Short-term
IDR to 'F1'.

Hybrid capital issues have been downgraded as they are notched down from the VR
in line with the criteria report, 'Rating Bank Regulatory Capital and Similar
Securities' dated 15 December 2011 available at www.fitchratings.com. The
ratings of hybrid issues should move in line with the VR.

The Long-and Short-term IDRs, Support Rating Floors and Support Ratings of the
group's French subsidiaries - Credit Agricole Corporate and Investment Bank, CA
Consumer Finance, Credit Agricole Leasing & Factoring, Eurofactor, Le Credit
Lyonnais and Union des Banques Arabes et Francaises - are based on an extremely
high probability of support from CA and are therefore sensitive to changes in
CA's IDRs. Debt of issuing vehicles is rated based on guarantees (from Credit
Agricole SA for Credit Agricole North America and from Credit Agricole Corporate
and Investment Bank for both Credit Agricole CIB Finance (Guernsey) and Credit
Agricole CIB Financial Products (Guernsey)).

The Long-term and Short-term IDRs of Agos Ducato S.p.A., a 61%-owned subsidiary
of CACF, were placed on Rating Watch Negative (RWN) as a result of the downgrade
of CA's VR. Agos' ratings are based on support from its majority owner, and are
therefore sensitive to changes in CA's ratings. Fitch expects to resolve the RWN
in the coming months after a review of Agos. The review will take into account
whether the benefit of sovereign support for CA could flow through to Agos under
various scenarios for Italy's sovereign rating, which is currently
'A-'/Negative.

The ratings of FGA Capital, a joint venture between Credit Agricole and Fiat
Group Automobiles S.p.A., were affirmed based on potential support from CA.
Fitch considers that the current notching between CA's and FGA's IDRs already
reflects a slightly lower probability that CA would support FGA, which is a
joint venture rather than a core subsidiary. Nevertheless, FGA's IDRs remain
sensitive to further changes in CA's ratings and to CA's propensity to provide
support. The Negative Outlook on FGA Capital's Long-term IDR reflects Fitch's
view that FGA Capital could, over the medium term, become less strategically
important to CA, which would put pressure on its ratings.

Fitch has affirmed the Insurer Financial Strength rating of the two core captive
insurance subsidiaries of the regional banks of Credit Agricole, Camca Assurance
and Camca Reassurance at 'A+' and their IDR at 'A'. Nevertheless, their Outlook
has been revised to Negative from Stable in line with that of their ultimate
parent company. Upgrade triggers for the captive insurance subsidiaries include
an upgrade of CA's credit rating and/or sustainably higher penetration rates
from CA's clients, above 60%. Downgrade triggers include a decline of CA's
credit rating and/or an increase in guaranteed residential loan default rates
leading to a combined ratio consistently above 100%.

The rating actions are as follows:

CA:
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Viability Rating: downgraded to 'a' from 'a+'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A+'

Credit Agricole S.A. (CA's central body):
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A+'
Senior debt: affirmed at 'A+'
Short-term debt: affirmed at 'F1+'
Lower Tier 2: downgraded to 'A-' from 'A'
Upper Tier 2: downgraded to 'BBB' from 'BBB+'
Innovative Tier 1: downgraded to 'BBB-' from 'BBB'
Non-Innovative Tier 1: downgraded to 'BBB-' from 'BBB'

CA Preferred Funding Trust, CA Preferred Funding Trust II, CA Preferred Funding
Trust III:
Preferred stock: downgraded to 'BBB-' from 'BBB'

Credit Agricole North America:
Commercial paper: affirmed at 'F1+'

Credit Agricole Corporate and Investment Bank:
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Support Rating affirmed at '1'
Senior debt: affirmed at 'A+'
Senior debt: affirmed at 'AAA(THA)'
Market-linked securities: affirmed at 'A+emr'
Short-term debt: affirmed at 'F1+'

Credit Agricole CIB Finance (Guernsey):
Senior debt: affirmed at 'A+'
Market-linked securities: affirmed at 'A+emr'
Short-term debt: affirmed at 'F1+'

Credit Agricole CIB Financial Products (Guernsey):
Senior debt: affirmed at 'A+'
Market-linked securities: affirmed at 'A+emr'
Short-term debt: affirmed at 'F1+'

Credit Agricole Corporate and Investment Bank (South Africa Branch):
Long-term senior debt: affirmed at 'AAA(zaf)'

CA Consumer Finance:
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Support Rating: affirmed at '1'
Senior debt: affirmed at 'A+'
Short-term debt: affirmed at 'F1+'

Credit Agricole Leasing & Factoring:
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Support Rating: affirmed at '1'

Eurofactor:
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Support Rating: affirmed at '1'
Certificate of Deposit: affirmed at 'F1+'

Le Credit Lyonnais (LCL):
Long-term IDR: affirmed at 'A+'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1+'
Viability Rating: 'a-' unaffected
Support Rating: affirmed at '1'
Certificates of Deposit: affirmed at 'F1+'

Bons a Moyen Terme Negociables (BMTN): affirmed at 'A+'
Union de Banques Arabes et Francaises:
Long-term IDR: affirmed at 'A-'; Outlook revised to Negative from Stable
Short-term IDR: affirmed at 'F1'
Viability Rating: 'bbb-' unaffected
Support Rating: affirmed at '1'
Certificates of Deposit: affirmed at 'F1'

Agos Ducato:
Long-term IDR: 'A'; Placed on RWN
Short-term IDR: 'F1'; Placed on RWN
Support Rating: affirmed at '1'

FGA Capital S.p.A.:
Long-term IDR: affirmed at 'BBB'; Outlook Negative
Short-term IDR: affirmed at 'F3'
Support Rating: affirmed at '2'
Senior debt: affirmed at 'BBB'

CAMCA Assurance:
Insurer Financial Strength: affirmed at 'A+'; Outlook revised to Negative from
Stable
Long Term Issuer Default Rating: affirmed at 'A'; Outlook revised to Negative
from Stable

CAMCA Reassurance:
Insurer Financial Strength: affirmed at 'A+'; Outlook revised to Negative from
Stable
Long Term Issuer Default Rating: affirmed at 'A'; Outlook revised to Negative
from Stable

(Caryn Trokie, New York Ratings Unit)