Business Services Industry

FRANCE: MOODY'S REPORTS: STABLE OUTLOOK FOR THE FRENCH BANKING SYSTEM.

IPR Strategic Business Information Database, November, 2007

The outlook for the French rated banks remains stable, reflecting their relatively ample capitalisation and diversified business models as well as the supportive and efficient regulatory environment, says Moody's Investors Service in its new Banking System Outlook for France. Moody's has not, so far, taken any rating action on a French bank as a direct consequence of the sub-prime crisis and the resulting credit crisis, although it does not rule out taking such action if necessary as the situation continues to develop.

A prolonged crisis or a contamination to other business segments could potentially alter the rating agency's view on some financial institutions, in France as elsewhere. Moody's views France as a high-support environment and believes that the...

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