Credit rating agency Fitch Ratings has affirmed it’s A+ financial strength rating with stable outlook and its subordinated notes ratings for CNP Assurances.
In its press release published today, Fitch Ratings underlined that: “The rating reflects CNP Assurances’ a strong capitalisation and leverage for its current rating, very strong business profile, and a stable record of financial performance. These strengths are partly offset by the insurer's fairly high asset risks for the rating, and sensitivity to the low interest-rate environment.
The rating action factors our expectation that La Banque Postale S.A. (LBP; A/Stable) will complete the acquisition of CNP Assurances’ remaining minority shareholding and become CNP Assurances’ sole shareholder in 2022. Our view is that the transaction will establish CNP Assurances’ as a key and integral part of LBP, which is supportive of an alignment of the IDRs and Outlooks of CNP Assurances’ and LBP.
In our view, CNP Assurances’ 100% ownership by LBP will enhance strategic and financial alignment of interests between the two companies. It will also cement the group’s bancassurance positioning while keeping CNP Assurances’ multipartnership distribution model and governance unchanged”.
The following table shows CNP Assurances’ current ratings:
| Credit rating agency | Fitch Ratings |
|---|---|
| Financial strength rating | A+ |
| Tier 2 and Tier 3 subordinated notes rating | BBB+ |
| Restricted Tier 1 subordinated notes rating | BBB- |
“The affirmation by Fitch Ratings of its A+ rating for CNP Assurances confirms a solid acknowledgement of the group's financial strength and robust business model” said Stéphane Dedeyan, Chief Executive Officer of CNP Assurances.