On Oct. 12, 2006, Standard&Poor's Ratings Services affirmed its 'AA-/A-1+' long- and short-term counterparty credit ratings on French bank Crédit Agricole S.A. (CASA) and related entities within the Crédit Agricole group. The outlook is positive. The affirmation follows the disclosure of the consequences for the Crédit Agricole group of the upcoming merger of Italian banks Banca Intesa SpA (A+/WatchPos/A-1) and SanPaolo IMI SpA (AA-/Stable/A-1+), in particular CASA's acquisition of 654 local branches in Italy. Standard&Poor's considers that the transaction is consistent with CASA's strategic objective to establish a foothold in the Italian market. The franchise of the group's new business organization in Italy will be concentrated in just a few regions, however. The Crédit Agricole group's
