S&P Global Ratings downgrades AFL’s rating to A+/A-1, stable outlook

Core Viewpoint - S&P Global Ratings has downgraded AFL's credit rating to A+/A-1 with a stable outlook, following a similar downgrade of France's sovereign credit rating, effective October 21, 2025 [2][4]. Group 1: Rating Changes - AFL's rating was revised from AA-/A-1+ (negative outlook) to A+/A-1 (stable outlook) [2]. - The downgrade of AFL's deeply subordinated notes intended to qualify as additional Tier 1 (AT1) capital was from A- to BBB+ [4]. Group 2: Business Model and Financial Position - AFL's rating is linked to the French sovereign due to its business model, which focuses exclusively on financing French local authorities [4]. - The bank's intrinsic credit profile remains unchanged at "aa-" and its financial position is solid [4]. - AFL has a robust business model, high liquidity, and prudent financial policies [7]. Group 3: Company Overview - AFL is the only French bank fully owned by local authorities, created to provide tailored financing for local investments while promoting sustainable finance practices [5]. - Since its launch in 2015, AFL has granted nearly €11.5 billion in loans, including €2 billion in 2024, and currently has 1,131 shareholders [5].