The ratings on Renault Crédit International S.A. Banque (RCI) reflect its: Solid market position in the car finance industry; Satisfactory asset quality; Recurring, although pressured, profitability; and Only modest capitalization. In addition, the ratings balance RCI's ultimate ownership by French carmaker Renault S.A. (BBB/Negative/A-3) with its status as a bank. Business concentration in car finance is partly offset by satisfactory geographic diversification across Europe. The difference between the ratings on Renault and those on its 100%-owned captive finance subsidiary can be ascribed to the latter's stronger financial profile and its bank 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
