Washington – The rating agency Fitch Ratings downgraded Friday the rating of France from AA + to AA by combining it with a stable outlook mainly due to the fiscal slippage
Fitch also considered low. the economic prospects of the country and said that they weighed on fiscal consolidation and stabilization of the debt ratio.
The French economy is expected to grow less than the average of countries in the euro area for the first time in four years, said Fitch.
The agency believes that the government’s structural reform program does not appear sufficient to reverse the negative trends that affect long-term growth and competitiveness.
Fitch expects growth of gross domestic product (GDP) french 0.4% in 2014 and 0.8% in 2015, the year the depreciation of the euro and prices the lower oil support growth somewhat.
Despite the economy measures 3.6 billion announced by the government, which will lead the 2015 deficit to 4.1% of GDP instead of 4.3% projected earlier, this will not be enough to change the projected Fitch on the dynamics of the public debt of France, the agency said.
In a statement, the French minister Finance Michel Sapin assured that the policy is beginning to bear fruit, as companies benefit from the first effects of levies cuts, which will continue in the coming years.
In a difficult economic environment in Europe The government maintains its course with the implementation of planned economies, with the continuation of reforms needed to boost growth and make them more competitive, explains Mr Sapin.
Fitch stresses that to 4.1% of GDP, the deficit forecast for 2015 shows no improvement over that of 2013. The government also plans a deficit of 4.4% for 2014, instead of 3.8% expected in April .
These deviations in budgetary objectives (…) weaken fiscal credibility, yet the agency said adding that this is the second time since late 2012 that the French government delays the objective reach the 3% deficit threshold demanded by the European Union.
The French government has postponed this goal to 2017.
According to the draft 2015 budget, the French authorities believe that the debt ratio will peak at 98% of GDP before declining to 97.3% in 2017 and 92.9% in 2019, says Fitch stresses, however, that the capacity of public finances to absorb shocks is reduced significantly.
The French debt is among the safest and most liquid in the world with a load of debt contained, the French government says in its press release, ensuring that investor confidence feeds on a coherent economic strategy that the government intends to continue with determination.
Fitch had threatened to lower the rating of France in mid-October. On October 10, the Standard and Poor’s competitor had also warned by passing negative rather stable the prospect of changing the note of the French debt, it remained at AA.
Standard and Poor’s is traditionally tough on France, it had been the first to deprive it of its triple A in January 2012. His rival Moody’s and Fitch recently continued to give the second highest rating possible in the quality of French debt, while S & amp; P had already descended to the third notch
(© AFP / December 12, 2014 11:32 p.m.) <-
(AFP / 12.12.! .2014 11:34 p.m.) ^ ->
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