The ratings on Renault Crédit International S.A. Banque (RCI) are based on the following: A solid market position in the car finance industry; Satisfactory asset quality; Recurring, although pressured, profitability; and Only modest capitalization. The ratings also factor in RCI's status as a bank and its ultimate full ownership by French carmaker Renault S.A. (BBB/Positive/A-2). High business concentration in car finance is partly offset by RCI's satisfactory geographical diversification across Europe. The difference between the ratings on Renault and those on its 100%-owned captive finance subsidiary can be ascribed to the latter's stronger financial profile and its status as a bank. In Standard&Poor's view, RCI's bank status under French law and the regulation to which it is subject
