{"id":523,"date":"2018-08-08T14:13:17","date_gmt":"2018-08-08T12:13:17","guid":{"rendered":"https:\/\/b-foncier.vaadigm.xyz\/?page_id=523"},"modified":"2021-04-09T09:16:55","modified_gmt":"2021-04-09T07:16:55","slug":"notation","status":"publish","type":"page","link":"https:\/\/b-foncier.vaadigm.xyz\/en\/notation\/","title":{"rendered":"Ratings"},"content":{"rendered":"

Obligations fonci\u00e8res of Compagnie de Financement Foncier are rated by Standard & Poor’s (S&P), Moody’s and Scope Ratings.<\/p>\n<\/a>\n\n\n\n\n\n
Standard & Poor’s (S&P)<\/span><\/td>\nMoody’s<\/span><\/td>\nScope Ratings<\/span><\/td>\n<\/tr>\n
ST<\/td>\nLT<\/td>\nST<\/td>\nLT<\/td>\nST<\/td>\nLT<\/td>\n<\/tr>\n
A1<\/td>\nAAA
\n<\/strong>Stable outlook<\/td>\n		P1<\/td>\nAaa
\n<\/strong>Stable outlook<\/td>\n		<\/td>\nAAA
\n<\/strong>Stable outlook<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

The rating of Compagnie de Financement Foncier not only reflects the stringent legal and regulatory framework but also the additional commitments it has made to investors, taken into account by the rating agencies.<\/p>\n

Compagnie de Financement Foncier is committed to maintain an overcollateralization level on its covered bond program commensurate with a AAA rating from S&P Global Ratings.<\/p>\n

Indeed Compagnie de Financement is required to effect management requirements allowing it to achieve overcollateralization above the regulatory minimum and minimize its risks:<\/p>\nCredit and counterparty risks<\/a>\n

Credit and counterparty risks<\/h1>\n

Asset purchasing criteria by category<\/h3>\n

Although regulations require that a soci\u00e9t\u00e9 de cr\u00e9dit foncier invest only in high quality assets, Compagnie de Financement Foncier implements additional asset purchasing criteria for each asset category, so as to limit its exposure to credit risk.
\nCompagnie de Financement Foncier selects the assets that it wishes to acquire based on their rating, probability of default, score at origination, expected loss and any hedging of assets, as well as yield curves. The assets that meet the Compagnie de Financement Foncier\u2019s criteria are then purchased at a price determined by the previous study.
\nFurthermore, Compagnie de Financement Foncier replacement values have very good external credit ratings. The minimum acceptable credit rating for each asset (except for intragroup assets) depends on the investment horizon and must meet the minimum rating criteria of each of the two main agencies, as shown below:<\/p>\n\n\n\n\n\n\n
<\/td>\nStandard & Poor’s<\/span><\/td>\nMoody’s<\/span><\/td>\n<\/tr>\n
From 0 to 59 days<\/td>\nST : A1<\/td>\nST : P1<\/td>\n<\/tr>\n
From 60 days to 6 months<\/td>\nST : A1 +<\/td>\nST : P1<\/td>\n<\/tr>\n
LT : Aa3<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Scope Ratings applies no predefined minimum rating. The analysis is done on a case by case basis.<\/p>\n<\/a>\n

Limiting counterparty risk<\/h3>\n

Cr\u00e9dit Foncier Group\u2019s risk policy specifies per-counterparty limits and Compagnie de Financement Foncier observes these limits in its decision process.<\/p>\n

For its hedging transactions and the company executes a framework agreement with each of its counterparties, with asymmetrical collateralisation and other specific terms set forth in an appendix to this agreement.<\/p>\n

Each counterparty agrees to pay Compagnie de Financement Foncier on a daily basis (or on a weekly basis for some of them) depending on the counterparty\u2019s rating a security deposit equal to its net debt position, with no compensation for this.<\/p>\n

On 9 January 2013, Compagnie de Financement Foncier made the following committments:<\/p>\n