Leading French banks downgraded

24 January 2012

Two of the foremost banks operating in France have had their credit scores downgraded amid fears about their current performance.

Leading ratings agency Standard & Poor's (S&P) announced today (24 January) it has decided to reduce the figures attached to the country's second and third-largest financiers - Societe Generale and Credit Agricole.

Earlier this month, France itself was downgraded along with several other member states of the eurozone due to the ongoing financial uncertainty clouding the economic region, meaning it lost its coveted triple-A status.

And S&P has indicated this is the primary reason for Societe Generale and Credit Agricole being cut from A to A+ with a stable outlook.

Meanwhile, Caisse des Depots et Consignatios has also been reduced to AA+ from AAA.

The agency noted that French financiers are likely to be able to meet their funding requirements in the coming year as the government is "supportive to its banking sector".

By Asim Shah

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