Moody’s downgrades top French banks over Greek crisis
Published 14/09/2011 | 09:03
Moody's – the credit ratings agency - has downgraded top French banks Société Générale and Credit Agricole while leaving BNP Paribas on negative watch.
Credit Agricole's rating slid from Aa1 to Aa2 while SocGen was cut from Aa2 to Aa3.
Shares in all three banks have fallen sharply in recent weeks on exposure to Greek debt and rumbles caused by the euro zone debt crisis.
Although BNP Paribas held on to its rating, the biggest French bank was kept on ‘negative watch’, opening the route to possible downgrade later.
Moody's said the Credit Agricole downgrade was directly related to the bank's exposure to Greece.
For SocGen, the move was linked to a re-evaluation of the amount of French state aid that would be made available to the lender in the event of a crisis.
Moody's warned in June that it was looking at French banks.