Moody's the rating agency cut the long-term debt ratings of three French banks on funding constraints and deteriorating macroeconomic fundamentals.

The agency downgraded the credit rating of BNP Paribas, Societe Generale and Credit Agricole, where Societe Generale ranking stands now at A1, downgraded by only one notch, while the other two banks credit ranking became Aa3 after the one-notch cut.

Moody's said the outlooks on the long-term ratings for all three banks are negative.

The agency also added that liquidity and funding conditions have deteriorated significantly, considering the current situation of the banks and the fragile operating environment for all European banks in general.