Credit Agricole S.A.

Our stable outlooks on CASA and GCA's other core banking entities reflect our view that GCA will maintain the 'a' group SACP and continue to increase its ALAC buffer until 2022. This factors in our belief that the group will maintain a leading franchise in its key business segments, especially domestic retail, asset management, and insurance. In the coming two years, we expect GCA will keep disciplined underwriting standards and comparatively superior coverage of its impaired assets, reflecting its low-risk profile. We also expect that the group will sustain satisfactory cost efficiency and adequate capitalization. We believe that GCA will continue to demonstrate good resilience to the current COVID-19-related difficult economic and risk environment, and sufficiently mitigate the negative effects

...The ratings on Credit Agricole S.A. (CASA) reflect S&P Global Ratings analysis of the consolidated Groupe Credit Agricole (GCA). The group primarily consists of the Caisses RTgionales de CrTdit Agricole (CRCAs), and CASA and its subsidiaries, including CrTdit Lyonnais (LCL), CA Consumer Finance (CACF), CrTdit Agricole Corporate and Investment Bank (CACIB), CACEIS, and CrTdit Agricole Assurances (CAA). We view CASA as core to GCA because of its critical role as the group's funding arm and central institution. CASA makes up a substantial part of GCA, also consolidating activities and subsidiaries not part of the mutual cooperative's perimeter. Our starting point for rating the core entities of GCA is the '###+' anchor for the group. We then adjust the four institution-specific factors to determine a group stand-alone credit profile (SACP) of 'a' for GCA. We add one notch for additional loss-absorbing capacity (ALAC) to arrive at the 'A+' long-term rating. We estimate that the group's ALAC...

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