Moody's May Downgrade Top French Banks

[alp227]

Source: The Wall Street Journal

PARIS—France's largest publicly traded banks face another week of turbulence as Moody's Investors Service may cut the credit ratings of BNP Paribas SA, Société Générale SA and Crédit Agricole SA because of their exposure to Greek sovereign debt, people familiar with the matter said.

A downgrade is anticipated because Moody's placed the three banks under negative watch on June 15, and the three-month window within which the agency traditionally announces rating decisions is drawing to an end, these people said.

Yet, the possible downgrade could fuel concerns—which have taken hold this summer—over how European banks would weather a further deterioration in the euro zone's sovereign-debt crisis.

In July, European banks had to mark down the value of their portfolios of Greek debt as part of a wider plan to bail out Greece for the second time in a year. At the time, French banks said their exposure to Greece was limited and well-compartmented.

Read more: http://online.wsj.com/article/SB10001424053111904265504576564001885858480.html

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[dixiegrrrrl]

1. "banks said their exposure to Greece was limited and well-compartmented." Riiiight

Then why are the banks calling for yet another rescue effort "if Greece defaults"?????