Morningstar DBRS Changes Trends on Sfil's Long-Term Credit Ratings to Negative From Stable After Sovereign Credit Rating Action

DBRS Ratings GmbH (Morningstar DBRS) confirmed Sfil SA's (Sfil) credit ratings, including the Long-Term Issuer Rating at AA (high) and the Short-Term Issuer Rating at R-1 (high). Morningstar DBRS changed the trends on the Long-Term credit ratings to Negative from Stable, while the trend on the Short-Term credit ratings remains Stable. The Support Assessment is SA1. A full list of credit rating actions is included at the end of this press release.

KEY CREDIT RATING CONSIDERATIONS
The confirmation of Sfil's Long-Term Issuer Rating at AA (high) and the trend change to Negative from Stable follow Morningstar DBRS' credit rating action on the Republic of France. On 21 March 2025, Morningstar DBRS confirmed the Republic of France's AA (high) Issuer Rating and changed the trend to Negative from Stable. For more details on the rationale for the sovereign credit rating action, please refer to the press release titled "Morningstar DBRS Changes Trends on Republic of France to Negative, Confirms Ratings at AA (high)" at .

Sfil's credit ratings reflect its statutory ownership by Caisse des Dépôts et Consignations (CDC), which is entirely owned by the Republic of France. Moreover, both CDC and the Republic of France provide letters of comfort in support of Sfil's creditworthiness. As a result, Morningstar DBRS' support assessment for Sfil is SA1.

CREDIT RATING DRIVERS
An upgrade of the Republic of France's credit ratings would lead to an upgrade of Sfil's credit ratings.

Similarly, if Morningstar DBRS were to downgrade of the Republic of France's credit ratings, it would downgrade Sfil´s credit ratings in turn. Any indication of weakening of the support mechanisms between Sfil, CDC, and the French state could also lead to a downgrade of Sfil's credit ratings.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
Credit rating actions on the Republic of France are likely to have an impact on this credit rating. 

There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (13 August 2024), https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in euros unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (4 June 2024),
https://dbrs.morningstar.com/research/433881. In addition, Morningstar DBRS uses the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings https://dbrs.morningstar.com/research/437781 in its consideration of ESG factors.

The following methodology has also been applied:
-- Morningstar DBRS Global Corporate Criteria (3 February 2025), https://dbrs.morningstar.com/research/447186

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies

The sources of information used for this credit rating include Morningstar, Inc. and company documents, Sfil 2023 Annual Report, Sfil 2023 Presentation, Sfil H1 2024 Interim Financial Report, and Sfil 2023 and H1 2024 Pillar III Reports. Morningstar DBRS considers the information available to it for the purposes of providing this credit rating to be of satisfactory quality.

Morningstar DBRS does not audit the information it receives in connection with the credit rating process, and it does not and cannot independently verify that information in every instance.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' trends and credit ratings are under regular surveillance.

For further information on Morningstar DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on Morningstar DBRS historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

The sensitivity analysis of the relevant key credit rating assumptions can be found at: https://dbrs.morningstar.com/research/450837.

This credit rating is endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Sonja Forster, Senior Vice President -- European Financial Institution Ratings
Rating Committee Chair: Vitaline Yeterian, Senior Vice President, Sector Lead -- European Financial Institution Ratings
Initial Rating Date: 10 September 2018
Last Rating Date: 28 January 2025

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For more information on this credit or on this industry, visit https://dbrs.morningstar.com.