OREANDA-NEWS. June 23, 2015. Fitch Ratings has assigned the French Region of Bretagne's (AA/Negative/F1+) EUR240m billets de tresorerie (BT) programme an expected Short-term rating of 'F1+(EXP)'. The final rating is contingent upon the receipt of final documentation conforming to information already received.

KEY RATING DRIVERS
The BT programme's expected rating is aligned with the region of Bretagne's Short-term Issuer Default Rating (IDR) as the notes under the programme are expected to constitute senior, unconditional, unsecured and unsubordinated liabilities of the issuer.

The rating is assigned to the programme and not to the notes under the programme. Fitch expects the notes issued under the programme to rank equally with the region of Bretagne's other unsecured and unsubordinated obligations.

Under the BT programme, the region of Bretagne plans to achieve maximum issues of EUR60m. The BT programme will be backed by sufficient committed short-term credit lines for a total EUR60m and available revolving lines with EUR187.5m outstanding at December 31, 2014. Fitch will monitor the level of back-up line in the medium term in accordance with the amount of each issue.

Bretagne's ratings reflect its sound operating performance and favourable socio-economic profile. The ratings also take into account the expected increase in debt due to sizeable capital expenditure until 2017. The Negative Outlook on Bretagne's Long-term IDRs reflects Fitch's view that debt metrics may not be compatible with the current ratings with direct debt at about 150% of current revenue in 2017.

RATING SENSITIVITIES
Changes to the region of Bretagne's Short term IDR would be reflected by the BT programme's rating.

For more information on Bretagne's rating sensitivities see "Fitch Revises Region of Bretagne's Outlook to Negative; Affirms at 'AA'" dated 24 April 2015 at www.fitchratings.com.