Debt: Moody’s lowers rating not France – 20minutes.fr

Debt: Moody's lowers rating not France – 20minutes.fr

ECONOMY – The rating agency maintains “Aa1″ French, with a “negative” …

fall? Drop it? The suspense on the credit rating of France ended Friday with the decision by Moody’s to maintain the “Aa1″ of the country, while reaffirming that degradation was not excluded in the future.

“Despite downward pressure on the credit, the country maintains significant forces, including the size and health of its economy and a sustainable debt burden despite a continuous and gradual erosion of its economic strength and budget, “said the rating agency said in a statement that should relieve the French government.

Incorrect information

On Thursday, the newspaper Opinion Yet had predicted a much darker outcome by ensuring that Moody’s had informed the executive of an imminent downgrade of the country, supposed influence the cost of borrowing on the markets. Finance Minister Michel Sapin had immediately made his formal denial, lambasting a “misinformation” and “ethically reprehensible.”

Thwarting the forecasts of analysts, Moody finally gave’s him right and brought some balm the heart of government, struggling with persistent unemployment and sluggish growth and engaged in a “pact of responsibility” disputed. “The affirmation of the rating is (…) supported by the government’s renewed accelerate the pace of structural reforms and introduce a more consistent approach to economic policy and commitment to implement a savings program budget, “said Moody’s.

Moody’s maintains a” negative “outlook

The Economy Minister Emmanuel Macron responded by saying that maintaining a grade of” committed “the government. “It reinforces the need to continue and deepen structural reforms to remove obstacles that hamper today’s France,” said he detailed in a statement. “This decision reflects the consistency of our economic strategy: implementation of the Covenant of responsibility, solidarity and reform to find a more competitive economy,” added Michel Sapin, in a separate statement

Moody’s. is far from a blank check given to the government Valls, who also engaged in a plan to save 50 billion euros. The agency thus advanced the “risks” on the implementation of the reforms because it believes the force “special interests” and “bad history” of the country’s compliance with its economic commitments.

Moody’s is maintaining a “negative” outlook on the French rating, indicating that it did not exclude the decrease in the coming months.

20 minutes AFP