Fitch Ratings-Paris/London-06 July 2009: Fitch Ratings has
assigned BPCE's four planned issues of deeply subordinated notes an
expected 'BB+' rating. This rating is on Rating Watch Negative
(RWN).
These instruments will be issued in exchange of existing Tier 1
securities of Natixis, NBP Capital Trust I and NBP Capital Trust
III (see details below). The amount to be issued is subject to the
delivery of existing Tier 1 securities of Natixis, NBP Capital
Trust I and NBP Capital Trust III by holders of these securities.
The proceeds of this issue will constitute Tier 1 capital for
BPCE.
BPCE will be the central body of Groupe BPCE to be created on 31
July 2009 from the merger of Groupe Caisse d'Epargne and Groupe
Banque Populaire.
The rating reflects the risk that the coupons on these
instruments could be forfeited given Groupe BPCE's expected
Individual rating, and is in line with Fitch's methodology on the
rating of hybrid capital. Under Fitch's criteria, banks whose
ratings are driven by support have their hybrid ratings determined
by the level of their Individual rating. Unlike the case of Issuer
Default Ratings, Fitch has consistently argued that hybrid
instruments cannot reliably be considered as benefiting from
external sovereign support.
These four issues would be assigned a 100% equity credit by
Fitch.
The existing Tier 1 securities that holders can exchange
are:
- Tier 1 securities issued by NBP Capital Trust I on 28 June
2000 (ISIN Code: XS0113462609)
- Tier 1 securities issued by NBP Capital Trust III on 27
October 2003 (ISIN Code: XS0176710068)
- Tier 1 securities issued by Natixis on 25 January 2005 (ISIN
Code: FR0010154278)
- Tier 1 securities issued by Natixis on 18 October 2007 (ISIN
Code: FR0010531012)
- Tier 1 securities issued by Natixis on 31 March 2008 (ISIN
Code: FR0010600163)
- Tier 1 securities issued by Natixis on 16 April 2008 (ISIN
Code: FR0010607747)
- Tier 1 securities issued by Natixis on 30 April 2008 (ISIN
Code: US63872AAA88 for rule 144A notes and ISIN Code: USF6483LHM57
for regulation S notes)
Contact: Eric Dupont, Paris, Tel: +33 (0)1 44 29 91 31; Janine
Dow, +33 1 44 29 91 38; Beatrice Kerzerho, Paris Ratings Desk, +33
(0)1 44 29 91 72.
Media Relations: Magdalena Rogalski, Paris, Tel: +33 1 44 29 91
25, Email: magdalena.rogalski@fitchratings.com; Hannah Warrington,
London, Tel: +44 (0) 207 417 6298, Email:
hannah.warrington@fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from
this site, at all times. Fitch's code of conduct, confidentiality,
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relevant policies and procedures are also available from the 'Code
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