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Mr 0.01%

Socgen Downgraded By Moody's?

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Bloomberg report here. The presenters just said they think it is likely to be a difficult trading today because of this downgrade.

"The bank has adequate capital to support its exposure to Greece, Portugal and Ireland, Moody’s said in a statement today." ...... wonder how many really believe this statement though?

http://www.bloomberg.com/news/2011-09-14/societe-generale-debt-deposit-ratings-cut-by-one-level-to-aa3-at-moody-s.html

Societe Generale Debt, Deposit Ratings Cut by One Level to Aa3 at Moody’s

Societe Generale (GLE) SA had its debt and deposit ratings cut by one level to Aa3 from Aa2 with a negative outlook by Moody’s Investors Service.

The bank has adequate capital to support its exposure to Greece, Portugal and Ireland, Moody’s said in a statement today. A separate bank financial strength rating remains under review as Moody’s examines the impact of “potentially persistent fragility” in bank financing markets.

Moody’s said that it anticipates that the bank financial strength rating would be cut by no more than one level.

U.S. money-market fund managers, led by Vanguard Group Inc. and Legg Mason Group Inc., have cut their lending to French banks at a pace that may force the banks to raise capital by selling assets, according to a Sept. 9 report by William Prophet, a desk analyst at Deutsche Bank Securities Inc.

Societe Generale said on Sept. 12 that it plans to free up 4 billion euros ($5.5 billion) in capital through disposals by 2013 to reassure investors about its finances.

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I wonder if this will have an impact on markets today? As well as yesterday's US consumer confidence news which didn't seem to go down to well. And Greece...

http://www.zerohedge.com/news/so-it-begins-socgen-debt-deposit-ratings-cut-one-notch-aa3-moodys-outlook-negative

Shouldn't think French bank downgrades will make a sod of difference to be honest. No-one can be that stupid that they need to wait for the rating agencies to tell them the blindingly obvious.

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I think I read earlier that FTSE futures indicates trading should be about 40pts down. Not sure if this was before SocGen and CreditAgricole downgrades tho.

I dont think it'll have much of an effect tho. I think all eyes will be on Greece. Interesting that French banks, with all their greek liabilities and all the talk of a Greek default, haven't incurred greater wrath on the markets?

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At market opening BNP (which hasn't been downgraded but remains on review) is down 5.5%. The two banks which have been downgraded (Soc Gen and Credit Agricole) are down 4.5% and 3% respectively.

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Looks like "this" downgrade is already priced in.

Indeed, the downgrade may be a function of price movement rather than a driver of it.

And Frenchie's being rather terse about it at the moment.

http://www.france24.com/en/20110914-moodys-ratings-agency-downgrades-french-banks-societe-generale-credit-agricole-greek-debt

Edited by indirectapproach

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Looks like "this" downgrade is already priced in.

Indeed, the downgrade may be a function of price movement rather than a driver of it.

And Frenchie's being rather terse about it at the moment.

http://www.france24.com/en/20110914-moodys-ratings-agency-downgrades-french-banks-societe-generale-credit-agricole-greek-debt

"Indeed, the downgrade may be a function of price movement rather than a driver of it." That's the way I see it. The market is treating the French banks as if their credit rating is much, much worse than it actually is. If anything a minor downgrade coupled by assurances that they can withstand a Greek default would bolster sentiment I'd've thought.

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  • 332 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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