Fitch Ratings downgraded the long-term issuer default ratings (IDRs) and short-term IDRs of a number of major banks in France. The credit rating agency said the viability ratings (VRs) of the French banks were unaffected.

Fitch Ratings

According to the credit rating agency, the long-term IDRs of Credit Agricole SA (OTCMKTS:CRARY) (EPA:ACA), Societe Generale SA (ADR) (OTCMKTS:SCGLY) (EPA:GLE), Groupe BPCE, Dexia SA (EBR:DEXB) (ETR:DXB) (FRA:DXB) and Dexia Credit Local were downgraded from  A. The short term IDRs of the French banks were also lowered to F1.

Fitch Ratings Also Downgrades Short-Term IDRS

Fitch Ratings also downgraded the short-term IDRs of BNP PARIBAS (BIT:BNP) (EPA:BNP) (OTCMKTS:BNPQY) and CMI1-CIC to F1. The long-term IDR ratings of both banks were the same.

In addition, Fitch Ratings downgraded the support rating floors (SRFs) of Credit Agricole SA (OTCMKTS:CRARY) (EPA:ACA), Societe Generale SA (ADR) (OTCMKTS:SCGLY) (EPA:GLE), CM1-CIC, Groupe BPCE, and Dexia SA (EBR:DEXB) (ETR:DXB) (FRA:DXB) and Dexia Credit Local to A.

Furthermore, the credit rating agency also lowered the long-term and short-term IDRs of Credit Immobilier de France Developpement (CIFD) to A and F1, respectively. The banks support rating floor (SRF) was also downgraded to A. Fitch Ratings also downgraded the long-term IDR of La Banque Postale A+ and its short-term IDR to F1+.

French Banks Downgraded

Fitch Ratings downgraded the credit ratings of major French banks after the agency lowered the credit status of France from AAA to AA last week, as the country confronts a huge amount of debt. The credit rating agency is concerned about France’s ability to support banks in the country.

The credit rating agency indicated that the financial situation in France is unfavorable and projected that the country’s debt would increase at a faster rate. Fitch Ratings is also concerned about the country’s 15-year high unemployment rate and believes that France’s economic recovery will be slow.

Last week, the French government revealed its plan to implement a modest stimulus and new strategies to simplify its bureaucratic, and highly-taxed economy.