S&P cuts France credit rating from AA to A+ • FRANCE 24 English
down again to just one A. Credit ratings agency Standard and Pores has notched France down to A+ one month after Fitch did the same. It means they think the country will be slower to repair its finances and repay its debts than previously expected. We expect policy uncertainty will affect the French economy by dragging on investment activity and private consumption and therefore on economic growth. It’s a slap in the face before France’s fractured parliament begins debating a new budget on Monday. The downgrade is an unusual move outside of regular scheduled updates and came at the end of a turbulent week in which Prime Minister Sebastian Lonu survived two no confidence votes and pledged to suspend a highly controversial pension reform. Reacting to the rating, Finance Minister Hon Lecure said it stressed the importance of approving a budget by the end of the year. The agency highlighted France’s very good fundamentals. We have a diversified economy, resilient growth, and a high level of savings, which is really important. As hard as passing a budget will be, it’s only the beginning. S&P projects that France’s debt will rise to 121% of GDP by 2028. 9% more than last year. Next Friday, fellow credit rator Moody’s will reveal whether they too are downgrading France.
Credit agency S&P said Friday it had cut its rating for France to A+ from AA, citing risks that the government would fail to significantly reduce its deficit next year. Story by Peter O’Brien.
#France #S&P #economy
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18 comments
It happened to the U.S. just get another credit card with a higher rate and roll it over. That’s how Obama did it. He did say mean things about Moody’s first though.
French are lazy.
France is not the only EU country in trouble.
Is that still standard or is that rather poor?
It feels like the general public in France is not aware of how grave the financial problems are.
Don't worry France, plenty of other countries are in just as much trouble!
Time for a group hug I think.
Moody next. Make me them dollars.
Is there going to be another meeting 📅?
Almost all social welfare States across the world are collapsing, even a handful of US States too.
Moody's downgrade is here already….. S&P skipped to lower their rating means the situation is really bad.
Lex Luthor: 1A 1A 1A
The French although a democracy, have been running a socialist economy since WW2
And has finally hit the eventual natural outcome of socialism – bankruptcy
The French work 35 hours a week, retire at 62, have the highest taxes in the EU
cradle to grave social welfare benefits that the country can no longer afford, and yet the people demand even more handouts
This is a country incapable of reform. Ratings methodologies aside, the public has no political will to change any of this and there is not enough growth to pay off the mounting costs. A+ might be generous in not too long.
Too many "A"s. Scale is meaningless. A, B, C, D, and F. France just became a B tier player.
Just print your own currency and borrow from your own central bank…oh wait a minute, cant do that in EU.
BBB should be the right rating. France under Macron has no future
Great. General Strike NOW
Import the third world, become the third world
Comments are closed.