Moody's may downgrade French banks over Greece

15th June 2011, Comments 0 comments

Ratings agency Moody's warned Wednesday it may downgrade the rating of French banks Credit Agricole, BNP Paribas and Societe Generale because of their exposure to Greek debt.

Moody's said it would review their exposure "to Greek government debt and the Greek private sector and the potential for inconsistency between the impact of a possible Greek default or restructuring and current rating levels."

"Today's actions reflect Moody's concerns about these banks' exposures to the Greek economy,...." the statement added.

"The magnitude and composition of these exposures differ substantially across these banking groups," it said.

The announcement came as European leaders failed to agree on the terms of a possible second bail-out for Greece after talks in Brussels late Tuesday.

Already on June 3, Moody's downgraded the deposit and senior debt ratings of eight Greek banks, having downgrade Greece's sovereign ratings just days earlier.

© 2011 AFP

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