• France's news in English

Bank shares tumble after BNP Paribas downgrade

AFP · 26 Oct 2012, 11:33

Published: 26 Oct 2012 11:33 GMT+02:00

Facebook Twitter Google+ reddit

In morning trading, shares in BNP Paribas slumped 2.99 percent to 38.44 euros, Societe Generale fell 2.91 percent to 24.16 euros and Crédit Agricole 2.52 percent to 5.85 euros in a Paris market down by 0.49 percent.

Late on Thursday, S&P downgraded three French banks and placed 10 others on negative outlook including Crédit Agricole and Société Générale.

"In our view, the economic risks under which French banks operate are increasing, leaving French banks moderately more exposed to the potential of a more protracted recession in the eurozone," S&P said in a statement explaining its action.

In its decision, S&P lowered its long-term rating on BNP Paribas to "A+" from "AA-", while knocking down smaller players Banque Solfea to "A-" from "A" and Cofidis to "BBB+" from "A-".

S&P said the downgrades "reflects our view that these groups are more vulnerable to the impact of rising economic risks in the eurozone, particularly in France and countries in southern Europe due to their geographic concentrations in these markets."

Story continues below…

S&P also revised the outlook to negative from stable on nearly a dozen banks including lending majors such as Allianz Banque, BPCE, Crédit Agricole
and Société Générale.

The change in outlook means S&P could subject these banks to a downgrade in the medium term.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
How speaking French can really mess up your English
Photo: CollegeDegree360/Flickr

So you've mastered French, but now it's time to learn English all over again.

French claims that Jungle camp is empty are rubbished
Photo: AFP

Reports from the scene say scores of migrants are still in the area of the Jungle despite French authorities claiming "mission fulfilled."

Kidnapped Riviera millionaire left tied up in car boot in Nice
Photo: AFP

Head of luxury Cannes hotel has been found alive after being kidnapped in Nice on Monday.

Paris landlords still charging illegally high rents
Photo: Panoramas/Flickr

... and it's tenants in the smaller apartments that get hit the hardest. Could you be paying too much?

France takes baby steps to make life simpler
Photo: AFP

... including extending the ridiculously short time limit for registering a new baby.

IN PICTURES: Calais Jungle camp goes up in flames
All Photos: AFP

Migrants leave behind a scorched camp as they are moved to locations across France.

French expats in UK suffer Brexit abuse
French ambassador to the UK Sylvie Bermann with Foreign Secretary Boris Johnson. Photo: AFP

French nationals no longer feel at home in the UK, ambassador says. But Brits in France have been greeted with sympathy since the referendum.

Six to go on trial in France over topless Kate photos
Photo: AFP

The topless pics sparked fury among the royals.

France sees biggest drop in jobless rate for 20 years
Photo: AFP

Good news at last. But it's unlikely to keep President Fran├žois Hollande in his job.

Calais migrants given mixed reception in French towns
Photo: AFP

Some in France have shown solidarity with their new guests, while others have made it clear they are not welcome.

The annoying questions only a half French, half Brit can answer
Sponsored Article
Last chance to vote absentee in the US elections
Forget Brangelina's chateau - here are nine others you've got to see
The must-see French films of the millennium - Part One
How life for expats in France has changed over the years
Why Toulouse is THE place to be in France right now
Video: New homage to Paris shows the 'real side' of city
The 'most dangerous' animals you can find in France
Swap London fogs for Paris frogs: France woos the Brits
Anger after presenter kisses woman's breasts on live TV
Is France finally set for a cold winter this year?
IN PICS: The story of the 'ghost Metro stations' of Paris
How to make France's 'most-loved' dish: Magret de Canard
Welcome to the flipside: 'I'm not living the dream in France'
Do the French really still eat frogs' legs?
French 'delicacies' foreigners really find hard to stomach
French are the 'world's most pessimistic' about the future
Why the French should not be gloomy about the future
This is the most useful French lesson you will ever have. How to get angry
Why is there a giant clitoris in a field in southern France?
French pastry wars: Pain au chocolat versus chocolatine
Countdown: The ten dishes the French love the most
Expats or immigrants in France: Is there a difference?
How the French reinvented dozens of English words
jobs available