OREANDA-NEWS. Fitch Ratings has assigned Natixis Bail's and Cicobail's guaranteed certificate of deposit (CD) programmes Short-term ratings of 'F1'.

KEY RATING DRIVERS
The rating of Natixis Bail's and Cicobail's guaranteed CD programmes is aligned with Natixis's (A/Stable/F1) Short-term Issuer Default Rating (IDR). This reflects Fitch's belief that Natixis, which ultimately owns 100% of both Natixis Bail and Cicobail, would support debt issued under these programmes, if required.

Our expectation is underpinned by the programmes' guarantee. Natixis has provided a guarantee for payment in full of the principal and interests, if any, on the CD programmes. This guarantee is irrevocable and unconditional, under French law.

In addition, Fitch's expectation of support for the programmes reflects Natixis Bail's and Cicobail's ownership by, full integration with and strategic role as leasing entities of Natixis and, indirectly, of its ultimate parent Groupe BPCE (A/Stable/F1). Our view on the likelihood of timely support from the parent is further supported by the small size of both entities, which would make any required support immaterial relative to the ability of Natixis to provide it. Natixis Bail's and Cicobail's assets together represented less than 1% of Natixis's at end-2014.

Fitch understands that the main rationale for Natixis setting up the CD programmes is for Natixis Bail and Cicobail to maintain specialised credit institution status. Since the implementation of CRDIV, French law requires any specialised credit institution to have deposits or other repayable funds from the public in its funding structure. CD issues qualify as deposits.

RATING SENSITIVITIES
Ratings for the programmes are sensitive to changes in the Short-term IDR of Natixis as well as a change in Fitch's view on Natixis's propensity to honour the guarantee.

Natixis's IDRs are equalised with those of its ultimate parent, Groupe BPCE. This reflects the fact that BPCE S.A. (A/Stable), Groupe BPCE's central body, is legally committed to maintain adequate liquidity and solvency for the entities affiliated to it, which includes Natixis. Thus, the Short-term IDR of Natixis will continue to move in tandem with that of Groupe BPCE unless there is a change in the affiliation status, which Fitch views as extremely unlikely.