Moody's downgrades two French banks amid looming Greece bankruptcy

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Logos of French banks Societe Generale and Credit Agricole

In what is being termed as a serious blow the European economic future, credit ratings of French banks Societe Generale and Credit Agricole have been downgraded by one notch due to their exposure to the Greek economy, says Moody's ratings agency. Moody's Investor Service said on Wednesday that Credit Agricole's rating slid from Aa1 to Aa2 while Societe Generale was cut from Aa2 to Aa3, Reuters reported. The agency also kept its long-term Aa2 rating of BNP Paribas on review for downgrade. BNP's profitability and capital base provides an adequate cushion to support its Greek, Portuguese and Irish exposures but the agency would extend its review for downgrade of BNP's long-term debt and deposit ratings.

However, any review is unlikely to lead to a downgrade in the long-term ratings of more than one notch. Last month, Moody's downgraded Japan's sovereign debt rating by one notch to Aa3, blaming the country's large budget deficits for the downgrade. Also, Standard & Poor's credit ratings agency in August lowered the United States of Zionism's triple A rating by one notch for the first time since granting it in 1917.

 ( Press TV )

Edited by Enticing Fury
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