Moody’s downgrades 3 leading French banks

PARIS (AP) – The Moody’s rating agency downgraded three leading French banks on Friday, saying that the spiraling debt crisis in Europe was making it hard for them to get loans and that the situation may get worse.

After a review, Moody’s lowered the overall financial strength ratings of BNP Paribas, Societe Generale and Credit Agricole SA. The banks’ long-term debt ratings were also downgraded, saying they were “affected by the fragile operating environment for European banks.”

Banks are at the front-line of the debt crisis raging across the 17-country eurozone that has threatened to drag the global economy back into recession.

It took action a day after a regulator said European banks have to raise about €115 billion ($154 billion) — more than expected — to meet a new standard meant to shore up the lenders against market turmoil.