France-Based La Banque Postale's Senior Nonpreferred Notes Rated 'BBB'

OVERVIEW La Banque Postale (LBP) has issued its first euro-denominated senior nonpreferred notes. Following the modification of the hierarchy of creditors' claims for banks, introduced under French law in late 2016, the notes rank junior to other senior obligations and senior to other subordinated notes. We are assigning our 'BBB' issue rating to the senior nonpreferred notes. The rating is one notch lower than our assessment of LBP's stand-alone credit profile (SACP), owing to our view that the senior nonpreferred notes are subordinated to more senior obligations and do not carry additional default risk relative to that represented by the bank's SACP. In particular, a potential bail-in of the notes would not cause a default of the bank, in our

...OVERVIEW + La Banque Postale (LBP) has issued its first euro-denominated senior nonpreferred notes. + Following the modification of the hierarchy of creditors' claims for banks, introduced under French law in late 2016, the notes rank junior to other senior obligations and senior to other subordinated notes. + We are assigning our '###' issue rating to the senior nonpreferred notes. + The rating is one notch lower than our assessment of LBP's stand-alone credit profile (SACP), owing to our view that the senior nonpreferred notes are subordinated to more senior obligations and do not carry additional default risk relative to that represented by the bank's SACP. In particular, a potential bail-in of the notes would not cause a default of the bank, in our view. PARIS (S&P Global Ratings) Oct. 6, 2017--S&P Global Ratings said today that it has assigned its '###' long-term issue rating to the euro-denominated senior nonpreferred notes issued by France-based La Banque Postale S.A. (LBP; A/Stable/A-1)....

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