Moody’s has downgraded the credit rating of three of France’s largest banks due to concerns that the banks have insufficient funds to cover their exposures to questionable sovereign debt. The banks have had difficulty securing short-term funding as larger investors have avoided buying French debt.
Moody’s cut its ratings on the long-term debt of BNP and Credit Agricole by one notch to Aa3, concluding reviews that began in June and were continued in September. Societe Generale’s long-term debt was cut by one notch to A1.
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