...Low Risk Profile: La Banque Postale's (LBP) ratings reflect its large domestic, albeit undiversified, franchise, overall low risk profile, sound capitalisation and solid funding profile. LBP's modest profitability constrains the ratings. The Stable Outlook on LBP's Long-Term Issuer Default Rating (IDR) reflects our expectation that diversification into higher-risk lending segments will be tightly controlled. Building a Lending Franchise: LBP is a large gatherer of customer deposits and savings in France and has a market share of about 20% in most regulated savings. However, its lending franchise is much smaller and is mainly based on the housing loan market (around a 6% market share). Further development of the loan book into consumer finance, public authorities financing and corporate lending, combined with the expansion of its insurance and asset management franchises, support LBP's business diversification. Modest Profitability Constrains Ratings: Contributions from business diversification...
