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French Banks Braced For Credit-Rating Downgrade - Sources

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http://uk.reuters.com/article/2011/09/10/uk-frenchbanks-idUKTRE78927620110910

France's top banks are bracing themselves for a likely credit rating downgrade from Moody's, sources close to the situation said on Saturday, further complicating their efforts to assure investors they are riding out the tensions in funding markets.

Several sources said on Saturday that BNP Paribas, Societe Generale and Credit Agricole were expecting an "imminent" decision from the ratings agency, which first put them under review for possible downgrade on June 15.

Moody's at the time had cited French banks' exposure to Greece's debt-stricken economy as the reason behind the review, which was due to last three months. Outside commentators said the ratings were ripe for a downgrade because of rising borrowing costs in the face of sovereign debt turmoil.

"The decision is imminent," one Paris-based source said. "It will probably be a downgrade but it's not certain yet."

Does that mean last minute political pressure it being put on Moody's not to do this?

Wasn't Sept 12th given on the previous thread as the likely date for downgrade?

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http://uk.reuters.com/article/2011/09/10/uk-frenchbanks-idUKTRE78927620110910

Does that mean last minute political pressure it being put on Moody's not to do this?

Wasn't Sept 12th given on the previous thread as the likely date for downgrade?

Just shows how useless and irrelevant the rating agencies are.

If there is a Greek default on Monday, for example, it's bye bye Soc Gen, Credit Agricole, Commerzbank, Dexia, Cyprus . . .

They all need downgrading now. (If not months ago.) If they downgrade them after the event, they just look even sillier than usual.

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http://www.zerohedge.com/news/moodys-downgrade-french-banks-imminent-risk-waterfall-follow-0

As regular readers may recall, back on June 14, before it became an even bigger pariah in the thoroughly discredited rating agency space due to its refusal to downgrade the US, Moody's placed French megabanks SocGen, BNP and Credit Agricole on downgrade review, which means that at some point in the future the rating agency would have to cut the banks' rating from its existing Aa1-2, to Aa3 or even a single A. It is true that when it comes to downgrade reviews the rating agencies are notorious for being as unpredictable in their timing as they are conflicted in their rating: for example even though Belgium was supposed to be downgraded months ago due to the fact that it continues to be the longest running modern anarchy, nothing has occurred, as political interests are obviously pushing the raters to do as paying clients request, not as reality demands. Alas, for France, which is very sensitive to any inkling it may have a less than sterling rating (due to its sovereign AAA requirement without which the EFSF/ESM falls apart), the luck may have run out. Bloomberg reports that the abovementioned banks "may have their credit ratings cut by Moody’s Investors Service as soon as next week because of their Greek holdings, two people with knowledge of the matter said.

Bloomberg continues: "Cuts are expected next week as the review period concludes, said the people, who declined to be identified because the matter is confidential."

http://www.bloomberg.com/news/2011-09-10/bnp-paribas-societe-generale-credit-agricole-said-to-face-cut-by-moody-s.html

At least this confidential information isn't leaking out! :lol::lol:

It would appear confidential means different things to different people. Although it's really no secret anyone holding Greek debt is going to lose.

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  • 334 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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