Moody's downgrades French banks on Greek fears

French bank shares have dropped after ratings agency Moody's downgraded two institutions due to their exposure to the eurozone debt crisis.

The agency cut Crédit Agricole from Aa1 to Aa2 and Société Générale from Aa2 to Aa3, on concerns surrounding their exposure to Greek debt. SocGen's share price opened down 5.5% on the news at €16.90, with Crédit Agricole falling 3.5% to €4.97. A third bank, BNP Paribas dropped 5% to €26.60, after it said this morning it would shed €70bn in risk-weighted assets in an attempt to calm markets' fears. Société Générale unveiled a similar plan earlier this week. SocGen and BNP Paribas shares subsequently pared losses but remained down on the day, with Credit Agricole up 2% as markets mov...