France’s Autorité des Marchés Financiers yesterday (Wednesday) decided to end the trading suspension of 3CIF and CIF Euromortgage bonds as the CIF group published a statement saying that it had closed their accounts for 2011 under the going concern principle.

Trading in CIF’s bonds had been suspended at the behest of AMF on 8 May after accounts had not been filed in time for 30 April. This followed Moody’s putting the rating of 3CIF on review for downgrade of up to four notches in February.

Since the trading suspension began, Fitch and Moody’s have affirmed 3CIF’s issuer rating on the expectation that state support for the group will be forthcoming, with HSBC having been mandated to find a “long term solution” for the group that could include a sale.

This is CIF’s statement:

Yesterday, 22 May 2012, Caisse Centrale du Crédit Immobilier de France (3CIF) and the société de crédit foncier CIF Euromortgage closed their books for the year ended 31 December 2011 under the going concern principle, taking into account the Crédit Immobilier de France Group’s cash forecasts for the end of 2012, the analysis of recent press releases by the rating agencies, and the search for a long-term solution.

3CIF and CIF Euromortgage reported net income of Euro 19.4 million and Euro 3.1 million, respectively.

Both units will publish complete financial documentation no later than 31 May 2012.

These companies’ financial statements must be examined in conjunction with those of the Crédit Immobilier de France Group, for which they serve as the financing arms. Consolidated financial statements are now being prepared, and consolidated net income of the Crédit Immobilier de France Group for the year ended 31 December 2011 is expected to be in line with that for the year 2010.

Both 3CIF and CIF Euromortgage have taken note of the Group’s decision to amend its business model, which recently came under sharp criticism from the rating agencies. The Group has mandated an investment bank to search for a long-term solution. Priority will be given to the sale of an ownership interest to an outside institution.

Read The Covered Bond Report later for more.