Bloomberg News

Komercni Banka, Erste Group Bank Shares Lead Czech Index Lower

June 22, 2012

Komercni Banka AS (KOMB), a unit of Societe Generale SA, and Erste Group Bank AG (RBAG) of Austria led Czech shares down after Moody’s Investors Service downgraded credit ratings for 15 of the world’s biggest banks.

Komercni Banka dropped 1.7 percent to 3,440 koruna by 9:38 a.m. in Prague. Erste also slid 1.7 percent to 367.7 koruna. The 14-member PX (PX) equity index, where the two lenders have a combined 37 percent weighting, declined 0.8 percent.

Societe Generale’s long-term debt and deposit rating was cut to A2 from A1 by Moody’s with a stable outlook. No lender was cut more than Moody’s originally outlined in a review started Feb. 15. Erste’s ratings were unaffected by the cuts.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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