Moody’s Investor Services has downgraded the credit rating of two Societe Generale subsidiaries and placed under review the Czech, Greek, Romanian and Russian subsidiaries of the French bank, following on from the parent group’s downgrade, Mediafax reports. Moody’s has downgraded Bank DeltaCredit’s local currency senior secured debt rating to Baa1 from A2 and assigned a negative outlook. Moody’s claimed his debt rating benefits from an explicit guarantee issued by SocGen.
These actions follow the recent downgrade of French parent bank SocGen’s ratings. Moody’s said in a statement: “The primary reason for the reviews for downgrade on the ratings of Geniki, BRD, Rosbank, Rusfinance and DeltaCredit is the downgrade of SocGen’s BFSR and long-term ratings.“In its review, Moody’s will consider the potential impact on each subsidiary of the lower ratings of the parent, as well as the rating agency’s view of the strategic fit of the subsidiaries’ operations within the group and the extent and nature of any financial linkages between them.” The ratings agency has also downgraded Komercni Banka’s long-term deposit ratings to A2, with a negative outlook, from A1. The short-term Prime-1 ratings have been unaffected.