The ratings of Credit Agricole SA (CASA) are based on the credit fundamentals of the entire Credit Agricole group. With cooperative and mutual roots, the group is a market leader in France pursuing a universal banking model. In recent years, management has successfully de-risked and refocused on core businesses, primarily domestic and selected international retail while leveraging its size and expertise in savings products (asset management and insurance).

As detailed in its 2016-2020 medium-term plan, the group’s key priorities are to improve operational efficiency and to increase integration to cross-sell more products and services. In addition, the group aims to improve the customer experience by streamlining and digitalizing key customer journeys. These initiatives should further support and enhance earnings; increasingly important considering the continuing low interest rate environment and evolving competitive dynamics. We would view negatively a change in strategy that increases the group’s risk profile or moves that lead to divergence in priorities within the group and diminish cohesion.

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