Moody’s Investors Service has cut the credit rating of France’s Credit Agricole SA and Societe Generale , citing their exposure to Greece’s debt, a fresh blow to euro area lenders struggling to restore confidence in the region, Business Standard reported.

The ratings agency left BNP Paribas on review for a ratings downgrade saying the bank’s profitability and capital base provides adequate cushion to support its Greek, Portuguese and Irish exposure.

In a sign of international alarm over the crisis, China and the United States advised Europe’s leaders to prevent the euro area debt mess-now threatening Italy from spreading. US president Barack Obama urged more effective coordinated fiscal policy by the euro area states.

US president Barack Obama urged more effective coordinated fiscal policy by the euro area states.Chinese Premier Wen Jiabao said Beijing was ready to help its biggest trading partner, but added that Europe must stop the crisis from rising. 

Moody’s cut Societe Generale’s debt and deposit ratings by a notch to Aa3 and Aa2 with negative outlook on its long-term debt ratings.

For Credit Agricole, it downgraded its bank financial strength rating one notch to C from C+, and cut its long-term debt and deposit ratings by one notch to Aa2 from Aa1.

Meanwhile, it kept long-term Aa2 rating on BNP Paribas on review for possible downgrade. Bank of France governer Christian Noyer said the Moody’s action was relatively good news.

“It’s a very small downgrade and Moody’s had a higher rating than the other agencies so it’s just put them on the same level or slightly better than others,” Noye added.

Moody’s said the new ratings are more consistent with the banks’ sizeable exposures to the Greek economy. The investors use Moody’s rating to help price the credit risk of fixed-income securities they may buy or sell.The values of its ratings are not limited to time of any initial purchase decisions, but extend throughout the lives of rated instruments.