Clear market leader in domestic retail banking. Diversified businesses and income sources. Average risk and signed agreement to sell Emporiki. Engagement in voluntary plan to adapt to upcoming stricter liquidity and capital regulations. Highly systemically important in France, which we classify as supportive to its banking sector. Subdued earnings in 2012, due to deleveraging plan and capital loss on the Emporiki disposal. Unfavorable interest rate environment. Sizable corporate lending book that carries increased credit risk under the current sluggish economic conditions. The negative outlook on French bank Crédit Agricole S.A. (CASA) reflects Standard&Poor's Ratings Services' view that there is a one-in-three possibility that negative trends for France's banking sector industry risks and any potential lowering of the ratings
