Bloomberg reported that BNP Paribas, Societe Generale and Groupe Credit Agricole had their credit ratings cut by Moody’s Investors Service, which cited funding constraints and deteriorating economic conditions amid Europe’s debt crisis.

Bloomberg noted that French banks have the highest holdings of public and private debt in the five crisis-hit countries of Greece, Ireland, Italy, Spain and Portugal, according to data from the Bank for International Settlements.

Bloomberg said that Moody’s cut the long-term debt ratings for BNP Paribas and Credit Agricole by one level to Aa3, the fourth-highest investment grade. Societe Generale’s rating was cut to A1, the fifth highest.

Bloomberg notes that before today, BNP Paribas shares had fallen 35% this year, Societe Generale 53%t and Credit Agricole 52%. That compares with a 33% drop in the 46-company Bloomberg Europe Banks and Financial Services Index.

To read the full text of the Bloomberg news report: click here.