Central government backing

Since 1996, France has chosen to manage in parallel the negotiable debt of the State and its social debt. Over the years, the legislative presentation of this duality has been improved. At the end of 2007, for the first time, a Minister in charge of Public Accounts in their entirety ensured coordination between the finance law and the social security financing law.

The solvency and liquidity of CADES are guaranteed by law: Article 7 of the 1996 Ordinance provides that "if the annual income and expenditure forecasts of CADES for the remaining period of the period for which it was created show that it would not be able to meet all its commitments, the Government submits to Parliament the necessary measures to ensure the payment of principal and interest on the dates provided. "

The State is the ultimate responsible for the solvency of CADES, in application of the amended law of 16 January 1980 relating to the enforcement of judgments by legal entities governed by public law. Reorganization and liquidation proceedings are not applicable to a public institution and, if it is dissolved, its assets and contingent liabilities are transferred to the community that created it (the State in the case of CADES).

CADES is rated by three international rating agencies. CADES' long-term and short-term debt is rated Aa2 and P-1 (stable outlook) by Moody's France S.A.S., AA and A-1 (negative outlook) by S & P Global ratings and AA and R-1 (stable outlook) by DBRS Morningstar. Because CADES is treated as a central government agency, its loans are assigned a 0% weighting in the risk-weighted assets (RWAs) of bank investors, as confirmed by the French banking regulator, the Autorité de contrôle prudentiel et de résolution (ACPR), in its notice on the calculation of prudential ratios under CRD IV.


CADES   -   139 rue de Bercy   -   75012 PARIS