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3 French Banks Downgraded by Moody’s on Risk of Systemic

France’s big banks have received credit downgrades from rating agency Moody’s that noted the high probability of system support for all three banks. Is the French government about to take over these banks?

This joins the warnings that came from S&P and while European leaders are still convened in Brussels after a long night of fruitful discussion.

BNP Paribas, the largest banks, saw a two notch downgrade of the  bank financial strength rating (BFSR) from B- to C. Long term debt and deposit rating was downgraded by one notch to Aa3. According to Moody’s “the probability of systemic support for BNPP remains very high”.

Societe Generale saw a downgrade of two notche”s in the  BFSR from C+ to C-, and the long term debt and deposit ratings by one notch to A1. Also here, Moody’s said that the “probability of  systemic support for SocGen remains very high”.

Credit Agricole received a one notch downgrade of the BFSR by one notch from C- to C and a one notch long term debt and deposit ratings to Aa3. Also here, “the probability of systemic support for CASA remains very high”. Creidt Agricole was rumored to be close to collapse last week, and the reason for the coordinated central bank action.

Further reading: S&P: France Could Get Get a Two-Notch Downgrade

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.