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.
