Fitch affirms Societe Generale

Fitch Ratings said it affirmed Societe Generale's long-term issuer default rating at A+, short-term issuer default rating at F1+, commercial paper rating at F1+, senior unsecured debt at A+, lower tier 2 notes at A, upper tier 2 notes at A- and hybrid capital instruments at A-.

Societe Generale SCF's long-term issuer default rating also was affirmed at A+, short-term issuer default rating at F1+, along with Societe Generale Acceptance NV's market-linked guaranteed notes at A+(emr), senior notes at A+ and senior guaranteed notes at A+.

SG Option Europe's market-linked guaranteed notes also was affirmed at A+(emr), short-term debt rating at F1+ and senior notes at A+, along with its SG Capital Trust III's preferred stock rating at A-.

The ratings reflect its franchises in retail banking and corporate and investment banking and the concentration of its credit risks in European Union countries, Fitch said.

The ratings also consider its high dependence on capital markets activity, when it only has a second-tier ranking in fixed-income products, volatile profitability, high non-performing loans ratios and low capitalization given its business mix, the agency said.

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