Moody's downgrades French bank credit ratings

Ratings agency Moody's has downgraded three leading French banks, citing the worsening eurozone debt crisis.

After a review, Moody's reduced the overall strength rating and debt ratings of BNP Paribas, Societe Generale and Credit Agricole.

The agency noted in three statements that the downgrades were prompted by deteriorating liquidity and funding conditions and "the fragile operating environment for European banks".

It took action today, the day after regulators said European banks have to raise about €115bn - more than expected - to meet a new standard meant to inoculate the lenders against market turmoil.

European banks have billions of euros of risky government bonds on their books, and investors are increasingly concerned the lenders won't be able weather all of the expected losses on those loans.