We think France's banking sector is facing increasing industry risks, including pressure on revenues from the slowing economy and recent reforms that have constrained the environment for banks. In our view Crédit Agricole group's (Crédit Agricole; rated entity Crédit Agricole S.A.) capital position has markedly improved in recent quarters, a trend we expect to continue. We are consequently affirming our 'A/A-1' ratings on Crédit Agricole. The negative outlook reflects that on France and our concerns that the group might not improve its capitalization and funding in line with our expectations. On June 20, 2013, Standard&Poor's Ratings Services affirmed its 'A/A-1' long- and short-term counterparty credit ratings on Crédit Agricole S.A. (CASA), the central body of Crédit Agricole, and
