FRANCE: French Industry Minister Eric Besson says the country's banks are solid despite a downgrade in the credit rating of two of them and slams what he says are rumour-driven markets

Record ID: 562568

  • Title: FRANCE: French Industry Minister Eric Besson says the country's banks are solid despite a downgrade in the credit rating of two of them and slams what he says are rumour-driven markets
  • Date: 15th September 2011
  • Summary: VARIOUS EXTERIORS SOCIETE GENERALE
  • Embargoed: 30th September 2011 13:00
  • Keywords:
  • Location: France, France
  • Country: France
  • Topics: Business,Finance,Domestic Politics
  • Reuters ID: LVADNHDIRYEJXF4AD6K1URLDM4JB
  • Story Text: French Industry Minister Eric Besson on Wednesday (September 14) said that French banks remain strong, despite the downgrade in their ratings by Moody's Investor Services.
    Speaking on I-Tele, a leading French news channel shortly after the downgrade, Besson slammed what he said were rumour-driven financial markets, which have put extreme pressure on banking shares in the last weeks.
    "French should not be worried. French banks are solid, they are solvent, they had reduced their exposure to Greek debt, there is no worry to be had," he said.
    Moody's earlier announced a cut in the ratings of Societe Generale and Credit Agricole, a move that brings its rating to a level of that of the other two main rating agencies, which assess the creditworthiness of the institutions they rate.
    "One of them has cut the rating of two banks slightly, which brings it in line with that of the two other agencies. So no worries. And to say once again, French banks are very solid. I remind you that last July -- not a long time ago -- they very successfully passed what we call the stress tests. Simply, we have speculation that is totally irrational and one can ask oneself if we're in a market economy or one dictated by rumour, it's an increasing problem," Besson said.
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