...Single-`A' Range Ratings: The three large French cooperative banking groups, CrTdit Agricole, Groupe BPCE and CM11-CIC, have high ratings. The ratings are based on the entire mutual groups, factoring in the primary banks as well as the central, capital markets-facing entities. These groups improved capitalisation, and their risk profiles and earnings benefit from a focus on their respective core domestic retail businesses, where they enjoy dominant market shares. Focus on Domestic Retail Banking: The three cooperative groups' focus on domestic core business has supported the build-up of stable and sound financial track records. Domestic retail banking is the largest contributor to the three groups' earnings, at around two-thirds. The banks also have strong franchises in asset management (CrTdit Agricole and Groupe BPCE) and insurance (mainly CrTdit Agricole and CM11-CIC), with solid performances mitigating pressure from low interest rates on retail banking profitability. Importance of Track...
