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France, Standard & Poor's cuts the rating: from AA+ to AA

The rating agency has cut its rating on French sovereign debt, downgrading it to AA from AA+ – The outlook changes from negative to stable: “Low probability of further action on France's rating” – The rating weighs the prospects of latent growth and high unemployment.

France, Standard & Poor's cuts the rating: from AA+ to AA

Standard & Poor's ax falls on France. The US agency cut the French Republic's long-term foreign and local currency sovereign rating by one notch, from AA+ to AA, while the outlook changes from negative to stable, given that, according to the S&P's press release, “the probability of further action on France's rating over the next two years is less than one in three”.

The reasons for the cut: according to the rating agency, the French government's macro-economic reforms will not increase the country's growth prospects in a solid way and high unemployment, which should remain above 10% at least until 2016, weakens support for fiscal policy measures.

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