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Bond Market News
CNP Downgraded to A- by Fitch Following France and La Banque Downgrades
September 22, 2025
CNP Assurances was downgraded to A- from A by Fitch, following the recent downgrade of its parent La Banque Postale (LBP). Fitch cut LBP’s rating to A- from A, citing weaker operating environment conditions for French banks after France was downgraded last week to A+ on rising fiscal challenges. The sovereign’s rating cut cascaded into a lower operating environment score for banks, leaving LBP with reduced headroom. LBP’s downgrade inturn reflects its less diversified profile, lower profitability and high exposure to French sovereign debt.
CNP, which is wholly-owned by LBP and accounts for about 60% of the bank’s assets and a large share of its profits, saw its own rating align with its parent company’s downgrade. Fitch noted that CNP’s standalone fundamentals remain very strong, with a Solvency II ratio of 242% in 1H2025 and a well-established franchise in the French life insurance sector. However the downgrade reflected the close integration with LBP and potential capital return demands to LBP. Fitch added that CNP’s high asset risk relative to peers also contributed to the rating action.
CNP’s 4.875% Perp was trading steady at 93.7, yielding 6.4%.
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