Credit ratings agency Moody’s says it may downgrade its ratings of France’s three largest banks over their exposure to debt-ridden Greece.
Moody’s said that BNP Paribas SA and Credit Agricole SA face a one-notch downgrade, while Societe Generale SA could see a two-notch decline through their holdings of Greek government bonds or through their local banking subsidiaries.
Earlier this month Moody’s downgraded Greece by three notches from a B1 rating to Caa1 with a negative outlook, citing increased risk that the financially stricken country will be unable to handle its debt problems without an eventual restructuring – paying creditors less than the full amount, or later than originally planned.
Source: Athens News