Moody's cut French banks' ratings

The ratings agency downgraded Societe Generale and Credit Agricole but left the biggest bank, PNB Paribas unchanged although it kept this bank on review.

It says that PNB Paribas has the profitability and capital base to provide it with an adequate cushion to support its exposure to debts in Greece, Portugal and Ireland.

The European Commission has announced that it will soon present plans for issuing a common Euro zone bond, despite encountering objections from a number of countries, including Germany.

There are widespread fears that Greece will default on its loans and some analysts believe that the default is unavoidable but that it will be carefully "managed" by members of the European Community.

For more:

• Read the Reuters article.
  
• More on Societe Generale.
  
• More on Credit Agricole.
  
• Read the European Commission's Economic Recovery Plans.