...Standalone Driven Ratings: La Banque Postale S.A.'s (LBP) ratings reflect its established franchise in France, a conservative risk appetite tempered by rapid loan growth, good asset quality, moderate profitability and strong funding and liquidity. They also reflect adequate capitalisation, taking into account ordinary support from LBP's direct and indirect shareholders. The increase of LBP's shareholding in CNP Assurances (CNP) to 62% expected in early 2020 has no impact on ratings. CNP Strengthens Company Profile: LBP is the sixth-largest French bank by total assets. It has an established domestic franchise in deposit collection and housing loans. The consolidation of CNP, which is the largest French life insurer, will expand LBP's franchise and significantly diversify its revenue sources from 2020. Transaction Negative for Asset Quality: At 1.5% at end-June 2019, LBP's impaired loans/gross loans ratio was low compared with that of peers. Fitch Ratings expects the integration of CNP to...
