{"id":523,"date":"2018-08-08T14:13:17","date_gmt":"2018-08-08T12:13:17","guid":{"rendered":"http:\/\/foncier.fr\/?page_id=523"},"modified":"2026-02-23T17:32:41","modified_gmt":"2026-02-23T16:32:41","slug":"notation","status":"publish","type":"page","link":"https:\/\/foncier.fr\/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><\/th>\nMoody’s<\/span><\/th>\nScope Ratings<\/span><\/th>\n<\/tr>\n
ST<\/td>\nLT<\/td>\nST<\/td>\nLT<\/td>\nST<\/td>\nLT<\/td>\n<\/tr>\n
A1<\/td>\nAAA<\/strong>
\nStable outlook<\/td>\n		P1<\/td>\nAaa<\/strong>
\nStable outlook<\/td>\n		<\/td>\nAAA<\/strong>
\nStable 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<\/h2>\n

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

In addition to the high level of security conferred by the very nature of the eligible assets, Compagnie de Financement Foncier sets up additional asset purchasing criteria for each asset category, so as to limit its exposure to credit risk.<\/p>\n

A selection is thus made on the basis of ratings, probability of default, repayment capacities, score at origination, loss expectations and possible hedging of assets. The assets meeting the purchase filter criteria are then purchased at a price incorporating the characteristics of each asset and the market rate curves.<\/p>\n

Furthermore, the safe and liquid short term exposures to credit institutions held by Compagnie de Financement Foncier benefit from very good credit ratings assigned by the external rating agencies.<\/p>\n

The minimum acceptable credit rating for each asset 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
<\/th>\nStandard & Poor’s<\/span><\/th>\nMoody’s<\/span><\/th>\n<\/tr>\n
From 0 to 60 days<\/th>\nST : A1<\/td>\nST : P1<\/td>\n<\/tr>\n
From 61 days to 365 days<\/th>\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