KBC group said in a press release last week that it expected its full-year net earning to fall by €900 million ($1.2 billion). This is a result of further downgrades by Moody’s Investors Service made on a range of CDOs held by the group.

KBC said in its statement that after having applied the new rating assumptions to the entire CDO portfolio, including securities that were not downgraded, and while maintaining the policy of bringing the value of all securities with a credit rating below 'Ba3' to zero, the adverse impact on value for KBC came to €600 million.

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