...Strong Standalone Strength: The ratings of CM11-CIC reflect the group's healthy franchise in French retail banking, low risk appetite, sound funding and liquidity, and strong capitalisation. The ratings also factor in a higher proportion of impaired loans than at similarly rated peers and satisfactory profitability. CM11-CIC is not a legal entity, but Fitch Ratings bases its analysis on consolidated group figures because of solidarity mechanisms within the group. Cooperative Banking Group: In Fitch's view, the group's cooperative ownership structure removes it from excessive market return pressure, which partly explains its lower profitability compared to similarly rated peers, and contributes to a prudent strategy, which defines CM11- CIC's culture. Retail Dominates Business Mix: CM11-CIC is France's third-largest retail banking group. Retail banking (including small subsidiaries in Germany and Spain) consistently generates most operating profit, but the group also has a strong franchise...
