UPDATE: Societe Generale Downgrades Royal Bank of Scotland to Hold on Core Balance Sheet Issues

Societe Generale downgraded Royal Bank of Scotland

from Buy to Hold. Societe Generale commented, "RBS has shown remarkable consistency in shrinking the high risk/low return assets in its Non-Core division (down from £258bn at the end of 2008 to £57bn), but the improving balance sheet shifts the focus to RBS Core, the ongoing business. It has some strong elements (UK retail, UK corporate) but is constrained by a subscale investment bank and a heavily loss-making Irish business that is unlikely to make a decent return for years." Royal Bank of Scotland closed at $9.86 on Thursday.