(September 1 – 11:45 ET) – DBRS is confirming its ratings for Societe Generale (Canada)at AA (low) and R1 (middle) for the long and short term debt respectively.
The move comes after its possible three-way merger plans were scotched.
French banking regulators decided that Banque Nationale de Paris must return
its 31.5% voting interest in SG. So SG remains independent. However regulators also allowed BNP to hang onto its 65.2% stake in Paribas, meaning that SG will no longer be able to complete that side of its proposed deal either.
DBRS says it expects SG to pursue a new deal with another European financial institution. It notes that despite the failed merger SG continues to perform well and its capital structure appears okay too.
-IE Staff
For more please see:
www.dbrs.com