Moody's lowers RCI Banque view to stable

Moody's Investors Service said it affirmed the Baa1 long-term senior unsecured debt and deposit ratings of RCI Banque and changed the outlook to stable from positive.

The agency also said it affirmed the bank's standalone baseline credit assessment and adjusted baseline credit assessment of Baa3, subordinated program rating of provisional Ba1, short-term ratings of prime-2 and long-term counterparty risk assessment rating at A3/prime-2 and short-term counterparty risk assessment at A3(cr)/prime-2(cr).

The outlook revision was prompted by the change in the outlook of its parent Renault SA to stable from positive, Moody's said.

The ratings reflect the bank's Baa3 baseline credit assessment and adjusted baseline credit assessment, two notches of uplift due to its large volume of senior long-term debt and resultant very low expected loss rate on these instruments, the agency explained.

The company plays a strategic role for Renault, Moody's said. It has sound risk management and financial fundamentals, the agency added.

The ratings are constrained by the bank's lack of business diversification and exposures to car dealers, Moody's said.

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