Standard and Poor’s put France on negative watch – Le Parisien

Standard and Poor's put France on negative watch – Le Parisien

<- Hard dé e: 0.02366304397583 sec -> If the American rating agency Standard and Poor’s (SP) on Friday confirmed the rating of France to AA, it nevertheless opened the way for his possible downgrade by changing the outlook to negative on the grounds that the country’s fiscal situation is “under deteriorating outlook for economic growth.”
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This means that France has at least one in three chance of seeing its rating, the best possible third, decline over the next 24 months. The French note was degraded for the last time in November 2013, from AA + to AA, by associating a stable outlook. SP had affirmed the rating and outlook in April. The decline in employers contained in the Stability Pact is a “positive factor” was then welcomed Standard and Poor’s last spring. However, the agency considered the government too optimistic about reducing unemployment but also the deficit.

Marie-France Raynaud, Senior Analyst rating agency for France, ruled in a report released Friday that “the budget deficit is more degraded” than expected and felt that could “further deterioration” due to “flexibilities reduced revenue.”

October 10, the agency estimates that the average budget deficit for the period 2014/2017 will reach 4.1% of GDP instead of 3.2%, according to the estimate provided by the agency in April, while the draft budget of France may be retoqué in Brussels. The France risks being forced by the European Commission to revise its draft budget 2015, which provides for a net slippage in public finances.

Sapin: “The debt among the safest in the world”

The revised outlook reflects the fact that the strength of the recovery the French economy is not guaranteed and the public finances could deteriorate beyond 2014 other hand, the analyst found that there was a “risk to the implementation of structural reforms announced “by the government, meant to boost growth and fiscal consolidation. “There is a lack of strong track record in terms of implementing reforms in France,” Has she said, also citing possible social resistance.

“The French debt is among the safest and the most liquid in the world, with a load of debt very contained and most liquid in the world, with a load of debt very contained, “reacted immediately the Finance Minister Michel Sapin. French bonds are trading at a very low rate in the markets, despite successive downgrades.