Fitch Revises Credit Municipal de Paris' Outlook to Negative; Affirms at 'AA'

Mon Jul 21, 2014 11:09am EDT

(The following statement was released by the rating agency) PARIS/BARCELONA, July 21 (Fitch) Fitch Ratings has revised Credit Municipal de Paris' (CMP) Outlook to Negative from Stable and affirmed its Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'AA'. The Short-term foreign currency IDR has been affirmed at 'F1+'. CMP's EUR250m medium-term notes programme ("Bons a moyen terme negociables" BMTN) programme was affirmed at 'AA' and its EUR750 short-term notes ("Certificats de depots" CD) programme at 'F1+'. KEY RATING DRIVERS The affirmation follows the agency's revision of City of Paris' Outlook to Negative from Stable and the affirmation of its Long-term foreign and local currency IDRs at 'AA+' and Short-term foreign currency IDR at 'F1+' (see "Fitch Revises City of Paris Outlook to Negative, Affirms at 'AA+'", dated 18 July at www.fitchratings.com). CMP's ratings are linked to those of City of Paris (AA+/Negative/F1+), reflecting the strong statutory support and control by the City of Paris over CMP, which is both a local public agency (EPA) and a fully city-owned financial institution. They also take into account CMP's position as a socially-oriented organisation, endowed with the regional monopoly on pawnbroking, which is considered a public service under French law. CMP's ratings are notched down by one level from those of Paris to reflect the absence of unconditional and immediate liquidity guarantee from its sponsor. RATING SENSITIVITIES The ratings of CMP are sensitive to rating action on the City of Paris. For more information on CMP's key rating drivers and sensitivities, please see the update dated 21 January 2014 at www.fitchratings.com. Contact: Primary Analyst Olivier Jacques Associate Director +33 1 44 29 91 89 Fitch France S.A.S. 60, rue de Monceau 75008 Paris Secondary Analyst David Lopes Associate Director +33 1 44 29 91 45 Committee Chairperson Guilhem Costes Senior Director +34 93 323 8410 Media Relations: Francoise Alos, Paris, Tel: +33 1 44 29 91 22, Email: francoise.alos@fitchratings.com; Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, "Tax-Supported Rating Criteria", dated August 2012, and "Rating of Public Sector Entities - Outside the United States" dated March 2014, are available on www.fitchratings.com. Applicable Criteria and Related Research: Tax-Supported Rating Criteria here Rating of Public-Sector Entities - Outside the United States here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article