Fitch downgraded the ratings of the largest banks in France

Fitch downgraded the ratings of the largest banks in FranceThe international rating agency Fitch has downgraded the long-term ratings of major French banks. According to the official press release from Fitch, it concerns the banks Credit Agricole, Societe Generale, Groupe BPCE, Dexia and Dexia Credit Local – their ratings were lowered by one point – from A + to A. 

Also at one point were lowered short-term ratings of these banks – from F1 + to F1 as well as La Banque Postale long-term rating was lowered from AA-to A +  of  (short-term rating is affirmed at F1).

Sustainability ratings of all banks remain the same. The outlook for all ratings is “stable.”

The downgrade of the leading banks is associated with a decrease in long-term credit rating of France by one point – from AAA to AA, which took place on 13 July 2013.

According to Fitch, at the moment the French government has less room to support the banking system of the country than ever before, which caused the downgrade.

Agency experts have pointed out that the financial problems of these banks (if any) can lead to a deterioration of “extremely precarious situation in the European banking sector.”