Summary: RCI Banque

Strong and recurring risk-adjusted profitability. A regulated bank insulated from its corporate parent. Strong capitalization. Predominantly wholesale-funded. Business concentration in car financing. Dependence on parent's franchise and product cycles. S&P Global Ratings' outlook on France-based auto financer RCI Banque (RCI) and its core subsidiary DIAC S.A. is stable. This reflects our view that, over the next 18 to 24 months, RCI's financial profile will remain strong, with our risk-adjusted capital (RAC) ratio for RCI remaining above 10%. We also consider that RCI's operating profitability will continue to benefit from resilient net interest margins and business volumes on the back of good sales performance of its parent, carmaker Renault S.A. We expect this will translate into sustained outperformance relative to peers,

...Outlook: Stable S&P Global Ratings' outlook on France-based auto financer RCI Banque (RCI) and its core subsidiary DIAC S.A. is stable. This reflects our view that, over the next 18 to 24 months, RCI's financial profile will remain strong, with our risk-adjusted capital (RAC) ratio for RCI remaining above 10%. We also consider that RCI's operating profitability will continue to benefit from resilient net interest margins and business volumes on the back of good sales performance of its parent, carmaker Renault S.A. We expect this will translate into sustained outperformance relative to peers, based on our measure of risk-adjusted profitability. We could lower the long-term rating if RCI's outperformance versus its peers weakened, for instance if credit losses substantially increased above the 30-40 basis points observed in the past three years or if margin pressure intensified in the current low-interest-rate environment. We would also lower the long-term rating if our projected RAC ratio...

Summary