Society Generale Debt Rating slashed along with Credit Agricole
Societe Generale SA (GLE) and Credit Agricola SA (ACA) were surrounded by the French banks to have their credit grades cut by Standard & Poor’s after France was stripped of its top rating earlier this month. Societe Generale, France’s second-largest bank by market value, and Credit Agricole, the third-biggest, had their liability downgraded to A from A+ with a even attitude, S&P said yesterday in declaration. Caisse des Depots et Consignations was also slashed, to AA+ from AAA.
European nations are grappling with a debt crisis now in its third year as they seek to restore budget order. France’s credit was lowered to AAA from AA+ on 13 January in the middle of downgrades that left Germany the single nation in the euro area with a stable top rating. The assessments for Societe General and Credit Agricola incorporate one level of government support rather than two levels that an AAA rated sovereign would offer, S&P said.
