Core Viewpoint - AFL's long-term credit rating has been downgraded from AA- (negative outlook) to A+ (stable outlook) by Fitch Ratings, following a similar downgrade of the French government's rating [1][3]. Rating Summary - AFL's long-term rating is now A+ with a stable outlook, while its short-term rating remains unchanged at F1+ with a stable outlook [3]. - The downgrade is a direct result of Fitch Ratings' methodology linking the sovereign rating to AFL due to its business model focused on financing French local authorities [3]. Financial Situation - The downgrade does not indicate a deterioration in AFL's financial situation, which remains solid [4]. - AFL maintains a robust business model, high liquidity, and prudent financial policies [8]. Regulatory Impacts - Debt issued by AFL is classified as high-quality liquid assets (HQLA1) under the LCR Delegated Regulation, provided that loans to eligible RGLA exceed 90% of total outstanding loans [5]. - As of June 30, 2025, AFL's debt securities have a risk weighting of 30% for the calculation of risk-weighted assets under the standard approach [9]. Company Overview - AFL is a bank created by and for French local authorities, aiming to empower local governance and provide cost-efficient resources with transparency [11]. - The institution focuses on maximizing public spending rather than profit, supporting local authorities in addressing social, economic, and environmental challenges [11].