OREANDA-NEWS. July 13, 2015 Fitch Ratings has revised Credit Municipal de Paris' (CMP) Outlook to Negative from Stable and affirmed its Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'AA-'. The Short-term foreign currency IDR has been affirmed at 'F1+'.

CMP's EUR250m medium-term notes programme ("Bons a moyen terme negociables" BMTN) programme is affirmed at 'AA-' and its EUR750m short-term notes ("Certificats de depots" CD) programme at 'F1+'.

KEY RATING DRIVERS
The revision follows the agency's revision of City of Paris' Outlook to Negative from Stable and the affirmation of its Long-term foreign and local currency IDRs at 'AA' and Short-term foreign currency IDR at 'F1+' (see "Fitch Revises City of Paris Outlook to Negative, Affirms at 'AA'", dated 3 July 2015 at www.fitchratings.com).

CMP's ratings are linked to those of City of Paris, reflecting strong statutory support from and control by the City of Paris over CMP, which is both a local public agency (EPA) and a fully city-owned financial institution. They also take into account CMP's position as a socially-oriented organisation, with a regional monopoly on pawn broking, which is considered a public service under French law. CMP's ratings are notched down by one level from those of Paris to reflect the absence of unconditional and first-demand liquidity guarantee from the city.

RATING SENSITIVITIES
The ratings of CMP are sensitive to rating action on the City of Paris.

A downgrade could result from weaker ties between the City of Paris and CMP. A negative rating action could also result from a lack of support by the city in case of a significant increase in risk at CMP's subsidiary CMP Banque.