S&P announced this evening it had cut its ratings of three major French banks.Credit Agricole and Societe Generale were downgraded to A from A+. Caisse des Depots et Consignations was downgraded to AA+ from AAA.
BNP Paribas avoided a hard cut but had its outlook changed to negative.
Earlier this month S&P stripped France of its AAA rating.
Here are excerpts from the downgrade reports:
- Standard & Poor’s lowered its unsolicited long-term sovereign credit rating on the Republic of France to ‘AA+’ on Jan. 13, 2012. We also affirmed our unsolicited short-term rating on France at ‘A-1+’. The outlook is negative.
- Following the sovereign action, we are lowering the long-term counterparty credit ratings on Credit Agricole S.A. and its core subsidiaries (except Cariparma) to ‘A’, and removing the ratings from CreditWatch negative.
- We are also affirming the ‘A-1’ short-term ratings on these entities as well as all issue ratings on their subordinated debt and junior subordinated debt.
- The stable outlook reflects our expectation that the group will further strengthen its capital position over the next two years and that its underlying performance will demonstrate satisfactory resilience despite the less dynamic operating environment since mid-2011.
- Standard & Poor’s lowered the unsolicited long-term rating on the Republic of France to ‘AA+’ on Jan. 13, 2012, and removed it from CreditWatch with negative implications.
- We are lowering to ‘A’ from ‘A+’ our long-term counterparty credit rating on Societe Generale and its core subsidiaries. At the same time, we are affirming our ‘A-1’ short-term counterparty credit ratings on these entities.
- We are also removing all long-term ratings from CreditWatch negative, where they were placed on Dec. 7, 2011.
- The outlook on the long-term rating is stable.
- Standard & Poor’s lowered its unsolicited long-term sovereign credit rating on the Republic of France to ‘AA+’ on Jan. 13, 2012. We also affirmed our unsolicited short-term sovereign credit rating on France at ‘A-1+’. The outlook is negative.
- Following the sovereign action, we are lowering the long-term counterparty credit rating on France-based Caisse des Depots et Consignations (CDC) to ‘AA+’, and removing it from CreditWatch negative.
- We are affirming the ‘A-1+’ short-term rating on CDC.
- Under our revised bank criteria (published Nov. 9, 2011) and our criteria for rating government-related entities (published on Dec. 9, 2010), the ‘AA+/A-1+’ ratings on CDC are equalised with those on France, reflecting our view of an almost certain likelihood of extraordinary support for CDC from the French government if needed.
- The outlook on CDC is negative and mirrors that on the sovereign.