French banks were the latest to feel the ripples from the Greek crisis, with Moody’s Investors Service placing the three biggest French banks on review for possible downgrade.
The rating agency needs to study the banks' exposure to Greek public and private debt.
Moody's placed the ratings of BNP Paribas, Societe Generale and Credit Agricole under reviews that will focus on their holdings of Greek public and private debt
“The primary focus of all three reviews will be the banks’ credit exposures to Greek government debt and the Greek private sector and the potential for inconsistency between the impact of a possible Greek default or restructuring and current rating levels,” Moody’s said in a report.
According to a Marketwatch report, U.S. banks had a total exposure of $41 billion to Greece by the end of 2010, based on the latest figures issued June 9 from the Bank for International Settlements.
About 83% is tied to guarantees that range from protection for sellers of credit-derivative contracts to other obligations owed to third parties.