Moody’s does not eventually degrade the rating of France – Le Figaro

Moody's does not eventually degrade the rating of France – Le Figaro

Moody’s maintained its credit rating of France to Aa1, which remains however with a negative outlook due to weak growth and high deficits. The decision of the rating agency is a relative surprise.

Moody’s maintained its Aa1 credit rating of France, which is nevertheless accompanied by a negative outlook due to continued weak growth and high deficits. The decision of the rating agency is a relative surprise as many investors were expecting a decline of at least one level of the French sovereign rating. The Finance Minister Michel Sapin, took note of this decision which for him “reaffirms the quality of the signing of the French state.” His colleague of Economy, Emmanuel Macron, said for his part that “France is convinced of his determination and ability to reform our country.” “This maintenance involves us because it reinforces the need to continue and deepen structural reforms to remove obstacles that hamper today’s France,” said he added.

Emmanuel Macron , to submit by the end of the year a bill meant to address some of these blockages to promote growth, said Friday it exposed to Moody’s outline of future text.

a statement, the ratings agency justified its decision by saying that, although subject to adverse pressures, France retains significant advantages, including “financing rates very low, reflecting a strong and diversified investor base and an environment of low yields very favorable, which should dissipate only gradually over time. ”

In a statement, Moody’s adds that he also considered “the renewed commitment of the government to accelerate the pace of structural reforms.” She believes that “historically low popularity levels of government reflect the pressures it faces,” but noted that “the recent parliamentary confidence vote reaffirmed its legislative mandate to implement a series of reforms to promote growth.”

For the agency, maintaining the negative outlook reflects among others the risks of economic and budgetary situation in France continue to decline, falling to a level inconsistent with the maintenance of Aa1. Its analysts expect growth of only 0.4% this year and 0.9% in 2015 before accelerating which would be 1.4% by 2018 They feel that the continued decline of the French growth since the crisis financial “partly reflects the gradual loss of competitiveness.”

Moody’s withdrew to France’s Aaa rating on November 19 2012 Standard and Poor’s meanwhile lowered the rating of France for the first time in in January 2012 and again in November 2013, AA, while combining it with a stable outlook.

The French government on Thursday denied a report in the daily L’Opinion that Moody’s had communicated its intention to degrade the sovereign rating of France.

Michel Sapin Friday asked the AMF to investigate “false allegations” in the newspaper.