Moody's downgrades French banks

The ratings agency Moody's has downgraded three leading French banks, citing the worsening eurozone debt crisis.

After a review, Moody's knocked down the overall strength rating and the debt ratings of BNP Paribas, Societe Generale and Credit Agricole.

The agency noted in three statements that the downgrades were prompted by deteriorating liquidity and funding conditions and "the fragile operating environment for European banks."

It took action Friday, 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 inoculate the lenders against market turmoil.

European banks have billions of euros of risky government bonds on their books, and investors are increasingly concerned the lenders won't be able weather all of the expected losses on those loans.