On December 9, Moody’s has cut the debt of France’s top three lenders, Societe Generale, BNP Paribas and Credit Agricole, citing deteriorating liquidity and funding conditions.
Following the move, the agency announced rating actions on Czech, Greek, Romanian and Russian subsidiaries of Societe Generale.
In Romania, BRD’s Baa2/Prime-2 long-term and short-term local currency deposit ratings were placed under review for downgrade.
“The primary reason for the reviews for downgrade…is the downgrade of SocGen’s BFSR and long-term ratings. In its review, Moody’s will consider the potential impact on each subsidiary of the lower ratings of the parent, as well as the rating agency’s view of the strategic fit of the subsidiaries’ operations within the group and the extent and nature of any financial linkages between them,” Moody’s said in a statement.