Fitch Ratings has placed Societe Generale Marocaine de Banques' (SGMB) National Long-Term Rating of '
The RWN follows the announcement by
The sale is subject to regulatory approvals, including from
The RWN on SGMB's National Ratings reflects Fitch's expectation that upon completion of the sale, the agency will cease to factor in SG's support in SGMB's ratings,. We will resolve the RWN once the transaction is concluded. At that time, we are likely to factor in sovereign support in the bank's National Ratings. If downgraded, SGMB's National Ratings are unlikely to fall below the 'A(mar)' category.
Key Rating Drivers
SGMB's National Ratings currently reflect Fitch's opinion of the support that the company could expect to receive, if required, from its 57.65% shareholder. SGMB is 57.65%-owned by SG, whose ability to support SGMB is strong (as reflected by its 'A-' Long-Term IDR).
The Key Rating drivers are as outlined in the rating action commentary published on
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
If the transaction closes, Fitch expects to downgrade SGMB's ratings to the higher of the levels of the bank's standalone credit profile or potential support expected from the Moroccan authorities.
If the transaction fails to close, we could affirm SGMB's ratings or downgrade them if we take the view that support propensity from SG has diminished.
The resolution of the RWN could extend beyond the typical six months if the transaction is not completed by the end of it.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
SGMB's National Ratings are at the highest level on the Moroccan National Scale and cannot be upgraded.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
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