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Moody's determines no negative rating impact due to updates to programme documents on Societe Generale's covered bond programme

November 23, 2012 | Moody's Investors Service

Moody's Investors Service has today announced
that the changes and amendments to the transaction documents of the
Societe Generale SFH Programme (the "Programme"), will not, in and of
themselves and at this time, result in a reduction or withdrawal of the
current Aaa ratings of the notes issued by the Issuer (the "Notes").
Moody's believes that the amendments do not have an adverse effect on the
credit quality of the Notes such that the Moody's ratings are impacted.
Moody's does not express an opinion as to whether the amendment could
have other, non credit-related effects.

The amendments include, but are not limited to, to the following changes:

- In accordance with the terms of a pre maturity test, Societe Generale
will be required to fund a cash collateral reserve upon loss of P-1 equal
to the amount of principal that will become due under the hard bullet
Notes for the following 270 days, and interests that will become due
under all the Notes for the following 90 days. Before this amendment, the
amount of the reserve to be funded was equal to maximum amounts due under
the notes (interest and principal) on any succeeding 365 day period until
the maturity date of the longer Notes.

- In accordance with the terms of a legal liquidity test, Societe
Generale will be required to fund a cash collateral reserve upon loss of
P-1 equal to the amount of principal and interest that will become due
under the Notes for the following 180 days. Before this amendment, no
reserve was funded in accordance with the legal liquidity test.

All amounts payable by Societe Generale in accordance with the pre
maturity test or as collection loss reserve will be deposited in an
account in the name of the issuer with a bank rated at least P-1.

The principal methodology used in this rating was "Moody's Approach to
Rating Covered Bonds" published in July 2012. Please see the Credit
Policy page on for a copy of this methodology.

Other methodologies and factors that may have been considered in the
process of rating the Issuers' notes may also be found in the Rating
Methodologies sub-directory on Moody's website. In addition, Moody's
publishes a weekly summary of structured finance credit, ratings and
methodologies, available to all registered users of our website, at

Moody's Investors Service did not receive or take into account a third
party assessment on the due diligence performed regarding the underlying
assets or financial instruments related to the monitoring of this
transaction in the past six months.

Moody's will continue monitoring the ratings. Any change in the ratings
will be publicly disseminated by Moody's through appropriate media.

The rating assigned by Moody's addresses the expected loss posed to
investors. Moody's ratings address only the credit risks associated with
the transaction. Other non-credit risks have not been addressed, but may
have a significant effect on yield to investors.

Company: Societe Generale

Full company nameSociete Generale SA
Country of riskFrance
Country of registrationFrance


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