BNP Cut to A From A+ by S&P on `Tighter' Capital Cushion
- S&P cites lack of sufficiently large loss-absorbing buffer
- BNP's capital management may remain `tighter' than rivals
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BNP Paribas SA, France’s largest bank, 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.
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.