...French ABS Proves Resilient: The performance of French ABS has proved notably resilient to the dire economic conditions of recent years. This is largely thanks to the robust structural features of these transactions and a regulatory context which supports and enhances French ABS amid the current stressed macro-economic environment. Performance Deteriorates Post Recession: The French economy continues to struggle in the wake of the global financial turmoil of 2008-2009. This has had a significant impact on the performance of consumer loans, resulting in high delinquency and default levels, despite the relative caution of the banking sector. Rising Unemployment Drives Defaults: The significant rise in unemployment over recent years will continue to pose a threat to transaction performance. The agency expects defaults to remain above pre-crisis levels over the next two years, though below the 2009/10 peaks. Macroeconomic Stress Factored into Expectations: Fitch maintains its stable outlook...
