Friday, May 20, 2011

S&P Downgrades Credit Agricole, To A+ From AA-, Due To "Greek Exposure"

How serious are bankster exposure to PIIGS debt? Here is a hint.

S&P has Downgraded the largest French retail banking group, Credit Agricole, to A+ From AA-, because of their exposure to Greek debt.

Says S&P:
We consider that French banking group Crédit Agricole (GCA) has a significant sensitivity to Greece's creditworthiness and economic prospects, primarily through subsidiary Emporiki's funding needs and exposure to local credit risk. The downgrades reflect our view that reduced creditworthiness of the Greek sovereign puts pressure on GCA's financial profile, given its exposure to the troubled Greek economy, mostly through its subsidiary Emporiki Bank of Greece (not rated). The downgrade reflects our view that persistent deterioration of the Greek economy induces negative prospects for the local banking sector, which could translate into further material credit losses at Emporiki and/or a sharp decrease in its customer deposits
Of course, Crédit Agricole is not the only bankster outfit holding Greek paper. Further, Fitch has downgraded Greece to B+, with a negative watch.

And then we have the report that according to Swiss journal NZZ,  Norway is going to stop all further financial aid payments to  Greece. The reason is that Greece has not fulfiled its austerity obligations, said, the Norwegian Foreign Minister Jonas Gahr Store before the Norwegian Parliament.

At some point, serious money printing will have to occur to bail the PIIGS out, or the entire structure collapses. Money printing, the most likely scenario, would be very inflationary, on the other hand a major collapse is just that, a major collapse. The end is near.

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