“This is a false and scandalous information” denies there at the top of the state.
rumor of a downgrade of France by Moody’s will punctuate the day of the press conference Francois Hollande. It all started with an article in The Opinion published at 11:24 , in which the rating agency had informed this morning the government of degradation, this Friday, the rating of the France. So she would go from Aa1 to Aa2-a note nevertheless remains good throughout the financial rating. It did not take an hour for Bercy demented information. The department “has not received any information from Moody’s at this stage,” he said formally shortly after noon. “This is a false and scandalous information,” we stormed to the top of the state.
according to the usual procedures with the rating agencies, it is 24 hours before the latter shall send the document to the country concerned, so that makes if necessary factual changes. So tonight it normally should happen to him, Moody’s has planned to release its update tomorrow night.
On the merits, it’s been months that the agency puts pressure on France without damaging it again. In late January, she decided not to change the hex notation, which then kept his Aa1. But it also maintained its “negative outlook.” For the government team has in mind she was under surveillance. At the beginning of the year, so, recognizing that “the government has introduced or announced a number of measures” (including Cice and the pact of responsibility) to improve competitiveness which continues to deteriorate for years, Moody’s wanted to ensure that the executive was not merely an effect of ads. It also stressed that “many details” missing on how we can increase growth and employment, while reducing government spending. “It is therefore difficult to assess at this stage the probability that the agreement achieves its goals,” contrasted Moody’s early this year.
The agency finally stressed that the fiscal space of the France was “limited,” which “presents a continuing risk to miss the objectives” of budgetary discipline. Last May, the agency decided not to update the rating of France while the calendar gave him the opportunity. And in August, in a note of comment, she doubted again a “capacity Pact responsibility to put France back on the path to growth” and reaffirmed that the hexagon was going to miss the fiscal scenario that it had developed. The agency was right: last week, the finance minister Michel Sapin, announced that the budget deficit would reach 4.4% of GDP this year and 4.3% in 2015 and two years Pushing the date Paris which had committed to bring below 3%.
remains to be seen if the patience of the rating agency really hit its limits. If the news would be bad politically, it may not cause severe financial crises. Investors, for years, have not been sensitive to successive downgrades of France by Moodys’, Standard & amp; Poor’s and Fitch. The rates are now at historically low levels. France is a safe country for debt repayment. However it starts tu dangerous levels, the government providing it continues to increase for at least two years, while it has certainly exceeded today billion 2000.
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