BNP Paribas sees long-term credit rating cut

BNP Paribas had its long-term credit rating cut to A from A+ by Standard & Poor’s, which cited a “less favorable” view of the lender’s capital cushion.

Bloomberg News reports that the bank hasn’t laid out plans to issue enough securities to increase its total loss-absorbing capacity, or TLAC, to meet S&P’s preferred level by 2018, the ratings company said in a statement Friday. S&P said it has a stable outlook on BNP Paribas’s ratings, reflecting an expectation that the bank will continue to strengthen and sustain capital at adequate levels, and that it will continue to deliver strong operating performance.

“The bank’s capital management is expected to remain tighter than that of its peers,” S&P said in a statement Friday. “The volatile market conditions are not helping BNP Paribas to bridge the gap with its peers, which have been steadily building up their buffers” for TLAC.

To access the complete Bloomberg News article hit the link below:

BNP Cut to A From A+ by S&P on `Tighter' Capital Cushion

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