Moody's Downgrades French Banks

Moody's has downgraded France's three big banks "due to their difficulty borrowing money".

Credit Agricole and BNP Paribas were cut from Aa2 to Aa3, and Societe Generale from Aa3 to A1.

"Liquidity and funding conditions have deteriorated significantly" also saying that the problem was likely to worsen.

"The probability that the bank will face further funding pressures has risen in line with the worsening European debt crisis,"

It also assigned a negative outlook to all three banks' ratings.