Fitch cuts Societe Generale

Fitch Ratings said it downgraded Societe Generale SA’s long-term issuer default rating to A- from A and removed it from rating watch negative.

The agency also downgraded Societe Generale’s senior preferred debt rating to A from A+. Fitch downgraded SG’s subordinated tier 2 debt ratings to BBB from BBB+ and tier 1 to BB+ from BBB-. Both tier ratings are based on the viability rating, which Fitch downgraded to a- from a.

“The downgrade of SG reflects its more variable strategic execution record than peers’ and expected medium-term negative impact of the coronavirus outbreak on its operating profitability. SG’s ratings continue to reflect a diversified company profile with a significant contribution from more volatile capital-market activities, moderate risk appetite, adequate capitalization and a sound liquidity profile,” Fitch said in a press release.

The outlook is stable.

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