OREANDA-NEWS. Fitch Ratings has assigned Compagnie Generale de Location d'Equipements' (CGL; A/Stable/F1) EUR1.5bn certificate of deposit (CD) programme a Short-term rating of 'F1'.

The rating does not apply to notes with embedded market risk that may be issued under the programme.

KEY RATING DRIVERS
The programme rating is aligned with CGL's Short-term Issuer Default Rating (IDR) as the certificates issued under the programme constitute direct, unsubordinated and unsecured obligations of the issuer. The terms of the programme stipulate that the maturity of any notes issued under the CD programme is subject to applicable requirements under French law, which currently restrict it to a maximum of one year.

CGL's IDRs are based on institutional support from the institution's 99.9% shareholder, Societe Generale (SG; A/Stable/F1), as Fitch believes that there is an extremely high probability that SG will support its subsidiary and its senior debt, if required.

CGL provides auto and leisure boat financing to SG's clients, which helps develop the bank's franchise, and also credit servicing and collection to several of SG's subsidiaries, both of which contribute towards its strategic importance within the group. Close management and strategic integration of CGL with its parent, along with its small size relative to SG (less than 1% of total assets), further underpin Fitch's expectation that support for CGL and its senior debt, if needed, would be forthcoming from SG.

RATING SENSITIVITIES
The programme rating is primarily sensitive to changes to CGL's Short-term IDR, with which it is aligned. CGL's Short-term IDR is primarily sensitive to a change in SG's Short-term IDR. In addition, reduced strategic importance to its parent, which we currently do not expect, would put downward pressure on CGL's IDRs, and consequently on the programme rating.