The ratings on RCI Banque (RCI) reflect its: Solid market position in the car finance industry; Wide geographic diversification, which partly offsets its business concentration; Satisfactory asset quality; Recurring, although pressured, profitability; and Only modest capitalization. In addition, the ratings balance ultimate ownership by French carmaker Renault S.A. (BBB/Stable/A-2) with RCI's bank status. The difference between the ratings on RCI and those on its 100% parent, Renault, can be ascribed to the former's stronger financial profile and its legal status. In Standard&Poor's view, the bank status of RCI under French law and the regulation to which it is subject reduce to a certain extent the potentially negative impact of any severe deterioration in the parent's financial profile. The
