Research Update: AXA Bank Belgium Downgraded To 'A-/A-2'; On CreditWatch Negative On Announced Disposal By AXA Group

AXA announced on Oct. 25, 2019, that it would sell AXA Bank Belgium to Crelan, a Belgian mutualist banking group. We continue to assume AXA Group would provide extraordinary support to the bank until the transaction closes, but after that we will remove all potential support from AXA Group because the bank's strategic importance for the group will have become much weaker. We are consequently lowering our ratings on AXA Bank Belgium to 'A-/A-2' from 'A+/A-1' and placing the long-term rating on CreditWatch with negative implications. The CreditWatch placement reflects the possibility of a downgrade when the deal officially closes, at which time we will remove any remaining rating support from AXA Group and assess the creditworthiness of the consolidated

...- AXA announced on Oct. 25, 2019, that it would sell AXA Bank Belgium to Crelan, a Belgian mutualist banking group. - We continue to assume AXA Group would provide extraordinary support to the bank until the transaction closes, but after that we will remove all potential support from AXA Group because the bank's strategic importance for the group will have become much weaker. - We are consequently lowering our ratings on AXA Bank Belgium to 'A-/A-2' from 'A+/A-1' and placing the long-term rating on CreditWatch with negative implications. - The CreditWatch placement reflects the possibility of a downgrade when the deal officially closes, at which time we will remove any remaining rating support from AXA Group and assess the creditworthiness of the consolidated Crelan/AXA Bank Belgium group, and consider if support from additional loss absorbing capacity (ALAC) applies to the ratings....

Research Update