OREANDA-NEWS. Fitch Ratings has downgraded Vauban Mobilisations Garanties' (VMG) EUR750m outstanding bonds to 'AA' from 'AAA' with a Stable Outlook. Fitch has simultaneously withdrawn the rating. VMG has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings for VMG.

The downgrade follows changes to the cover pool composition, with 'AAA-sf'-rated FCC tranches (57% of the cover pool) and non-collateralised exposures to Groupe BPCE (A/Stable) being replaced with covered bonds issued by Compagnie de Financement Foncier (CoFF), rated 'AA'/Stable by the agency. As these now represent 100% of the pool, the agency links the rating of VMG's bonds to that of CoFF's covered bonds. The Stable Outlook on the bonds reflects the Stable Outlook on CoFF's covered bonds.

Changes to the pool composition were implemented on 28 April 2015 following amendments to VMG's investment rules approved at a bondholders' meeting on 2 April 2015. The changes replace the collateralisation of VMG's short-term cash investments within Groupe BPCE, which was announced on 24 March 2015 on VMG's website.