Moody's to raise outlook for most euro zone banking sectors

Moody's is set to lift its outlook on the banking systems in most euro zone countries in the coming weeks after lifting its perspective for those of France and Spain, a senior analyst said on Wednesday.

Associate managing director Alain Laurin said the lifting of uncertainties related to the euro zone's bank recovery and resolution directive (BRRD) had prompted the move.

"All countries with exceptions will be stable or positive. Why? Because the driver behind the negative (outlook) for all the countries in the euro zone ... is the BRRD," Laurin told journalists in Paris.

In addition to credit ratings on specific banks, Moody's produces general outlooks for the coming 12-18 months on national banking sectors based on the macroeconomic environment as well as financial health and regulations.

Moody's already last month raised its outlook for the Spanish banking system to positive from negative and lifted it to stable from negative for France on Wednesday.

For the French banking system, the stable outlook reflected not only the subsiding of regulatory uncertainties but also an improvement in bank balance sheets and in the economic environment, said senior analyst Laurent Le Mouel.