S&P affirms, withdraws Banque PSA

Standard & Poor's affirmed its BB+/B long- and short-term counterparty credit ratings on Banque PSA Finance. The agency subsequently withdrew its ratings on the company, as well as the ratings on debt issued by Banque PSA Finance, including debt guaranteed by the French state, at the bank's request.

At the time of the withdrawal, the outlook was stable.

S&P analyzes Banque PSA Finance as a member of a wider group, the Banque PSA Finance group, which provides car financing for Peugeot SA. This group includes 50% of the joint ventures established in partnership with Santander Consumer Finance, the consumer finance subsidiary of Spanish bank Banco Santander SA.

The affirmation reflects S&P’s unchanged assessment of Banque PSA Finance’s stand-alone credit profile as bb+. The SACP incorporates the agency’s view of the bank's anchor (S&P’s starting point in assigning an issuer credit rating) as bbb+, based on the combined geographical breakdown of the bank's direct lending activities and 50% of the loan book exposure of the joint-ventures.

The ratings also reflected S&P’s unchanged view of Banque PSA Finance group's weak business position, adequate capital and earnings, adequate risk position, average funding and adequate liquidity.

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