...Stable Rating Outlook: Fitch Ratings has Stable Outlooks on five of the six major French banking groups' Long-Term Issuer Default Ratings (IDRs). The Positive Outlook on CrTdit Agricole's Long-Term IDR reflects our expectation of a sustained improvement in the bank's risk profile, which, combined with further evidence of better asset quality, improved profitability and stronger capital ratios, could result in an upgrade. Stable Sector Outlook: We expect the large banks to continue to benefit from diversified and conservative business models, and solid balance sheets. The impact from the still fragile French economy and the long-lasting low interest rate environment is likely to be manageable. Diversification Supports Earnings: Fitch anticipates some economic recovery in France in 2016 ¡ we estimate a 1.5% GDP growth rate for 2016 from 1.1% in 2015. The gradual recovery in France's economy has translated into some low loan growth to date in 2015, but not enough to offset margin compression...
