Core member of the La Poste group; Strong franchise in its core market; Low risk profile derived from excellent asset quality and superior liquidity; Professional management and cautious expansion strategy; and Satisfactory capital position. La Poste's weak stand-alone financial profile and decreasing likelihood of direct state intervention; Limited business diversification; Poor operating profitability; Challenge of managing the cultural change linked to the creation of the bank; and Unseasoned credit risk management skills following the expansion of lending activity. The ratings on La Banque Postale are based on the bank's position as a highly integrated core subsidiary of La Poste (AA-/Stable/A-1+). They also take into account an adequate stand-alone position--resulting from a strong franchise in the domestic retail market, a low
