Societe Generale Secures Moody’s Confidence with A1 Rating Affirmation and Stable Outlook

In a decisive vote of confidence, Moody's Ratings has affirmed Societe Generale's A1 long-term senior unsecured debt, deposit, and issuer ratings and changed the outlook to stable from negative. This is a significant milestone for French banking behemoth as it navigates a turbulent financial climate with greater confidence.

Key Developments

Moody's affirmed Societe Generale's baa2 Baseline Credit Assessment (BCA) because of high-quality assets and controlled cost of risk

The CET1 ratio of the bank stood at 13.4% as of March 31, 2025, higher than its target of 13%.

Profitability has already been enhanced based on lower restructuring cost and improved French retail banking and global capital markets performance

LeasePlan Corporation N.V. integration into Ayvens has already begun to generate synergies, enhancing the mobility and leasing services of the bank

Strategic Strengths

Societe Generale has a diversified business sector and geographic mix

Finances and liquidity are good, with liability structure aligned to the maturity of assets and proven access to capital markets

Its Czech unit and capital markets business segments are contributing positively to overall performance

Outlook Rationale Moody's stable outlook is driven by expectations of continued profitability, robust asset quality, and ongoing maintenance of the CET1 ratio over 13%. The rating also includes a three-notch uplift from Moody's Advanced Loss Given Failure analysis and a one-notch uplift of government support.

Sources: Investing.com, Moody's Ratings, Societe Generale official publications