Update: La Banque Postale

We see CNP as the relevant entity to assess LBP's credit quality, considering the considerable support LBP derives from its subsidiary's successful insurance activities. As we expect CNP to upstream capital to support LBP hybrids' creditors if necessary, we rate LBP's hybrid debts based on our issuer credit rating on CNP. We also consider the structural subordination of LBP's hybrids to CNP's hybrids in the notching of LBP's hybrids (see "Research Update: La Banque Postale Hybrid Debt Ratings Raised On Integration With CNP; Issuer Credit Ratings Affirmed; Outlooks Negative," published Oct. 9, 2023). The group's net banking income and net income have been fully driven by CNP over the last years. As of June 2023, we estimate that CNP contributes

...We expect La Banque Postale (LBP) to maintain an integral role within the La Poste group. LBP is fully integrated in the La Poste group, and we see the reputations of LBP and La Poste as closely linked. Among other things, they share the same distribution network and certain personnel, and have related brand names and similar customer recognition. We also believe that LBP benefits from La Poste's strong long-term commitment of financial support, as seen in the past. We therefore see LBP as a core subsidiary of the La Poste group and align our rating on LBP with that on La Poste (A+/Negative/A-1), resulting in a four-notch uplift above our assessment of the group's '###' group credit profile (GCP). We analyze LBP primarily as an insurance entity with associated banking activities. LBP is the sole shareholder of CNP since mid-2022. The two financial entities of La Poste group have increased their integration over the past years, and we see strong alignment of their governance. We consider...

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