Related News
Moody's downgrades French banks
Source: Agencies |
September 15, 2011, Thursday
|
Print Edition
Print Edition
Rating agency Moody's yesterday downgraded French banks Societe Generale and Credit Agricole following a period of huge volatility in the markets as investors fretted about their exposure to Greek debt.
Such a move by Moody's had been widely expected after the agency put them and rival BNP Paribas on review.
While cutting its rating on Societe Generale's debt and deposit rating by one notch to Aa3 and Credit Agricole's by the same amount to Aa1, Moody's warned that both could be downgraded further as it assesses "the implications of the persistent fragility in the bank financing markets, given the banks' continued reliance on wholesale funding."
Because of fears of the scale of European banks' exposure to Greek and other risky debt, some have been having trouble securing the loans they need to fund their day-to-day operations. US money-market funds have been particularly reluctant, and one European bank was forced to pay higher-than-market rates recently to get dollar funding from the European Central Bank.
But the banks, Societe Generale and BNP Paribas, in particular, have denied that funding difficulties have put them in any real danger, saying they have plenty of access to loans.
Though it maintained its Aa2 rating on BNP Paribas because its profits and capital base "provide an adequate cushion to support its Greek, Portuguese and Irish exposure," Moody's said it could be downgraded later.
Societe Generale said Moody's analysis shows the bank's exposure to Greece is "modest and manageable."
Societe Generale chief executive Frederic Oudea said the bank was prepared for a downgrade and will not change its outlook.
Such a move by Moody's had been widely expected after the agency put them and rival BNP Paribas on review.
While cutting its rating on Societe Generale's debt and deposit rating by one notch to Aa3 and Credit Agricole's by the same amount to Aa1, Moody's warned that both could be downgraded further as it assesses "the implications of the persistent fragility in the bank financing markets, given the banks' continued reliance on wholesale funding."
Because of fears of the scale of European banks' exposure to Greek and other risky debt, some have been having trouble securing the loans they need to fund their day-to-day operations. US money-market funds have been particularly reluctant, and one European bank was forced to pay higher-than-market rates recently to get dollar funding from the European Central Bank.
But the banks, Societe Generale and BNP Paribas, in particular, have denied that funding difficulties have put them in any real danger, saying they have plenty of access to loans.
Though it maintained its Aa2 rating on BNP Paribas because its profits and capital base "provide an adequate cushion to support its Greek, Portuguese and Irish exposure," Moody's said it could be downgraded later.
Societe Generale said Moody's analysis shows the bank's exposure to Greece is "modest and manageable."
Societe Generale chief executive Frederic Oudea said the bank was prepared for a downgrade and will not change its outlook.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
