Moody's Cuts French Banks' Ratings

    View of the Societe General bank headquarters in Paris, Thursday Aug. 11, 2011. French bank Societe Generale's shares plunged more than 20 percent at one point Wednesday. Asian stock markets continued their slump Thursday but European shares clawed back ground as traders awaited data that they hoped would show a brighter employment picture in the U.S.(AP Photo/Jacques Brinon)

    Jacques Brinon / AP Photo

    Moody’s slashed the ratings Wednesday for two French banks, Société Générale and Crédit Agricole, due to concerns over their exposure to Greek debt. French financial institutions have the most exposure to Greek debt—the downgrade is, therefore, a sign of worry from Moody’s that Europe will be unable to stabilize the Greek economy. Still, the downgrades were not as bad as some had feared: BNP, France’s largest bank, saw its credit rating unchanged.

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