France has found a little grace in the eyes of the rating agency Standard and Poor’s, which had been the first to drop his note in 2012 on its economic performance, a development hailed as a “sign of trust” by the government.
The u.s. agency, whose ratings are very followed by the creditors of France, had been the first to deprive France of the precious “AAA” in January 2012, a thunder, a few months before the presidential election.
Friday, Standard and Poor’s raised the prospect of the “AA” rating of france from “negative” to “stable”, a sign that she is more optimistic about the economic prospects of France.
The “risks” identified in October 2014 by the agency are not “materialized”, she said in a press release. S&P puts it, “a gradual introduction of reforms,” the French government “to revive growth on a background of fiscal consolidation”.
“Our reforms to redress our economy, our attractiveness, without sacrificing our social model, pay. Continue!”, welcomed the Prime minister Manuel Valls on his account Facebook.
The agency cited the reform of tax and labour law, which should have according to her “the stabilizing effects on employment, growth, competitiveness and the public finances”.
“The economic recovery is on track, especially if the rebound in business investment is confirmed, and if employment growth accelerates,” said Standard and Poor s.
For Michel Sapin, minister of Economy and Finance, the increase is a reflection of the “sign of the agency’s confidence in the economic outlook and the budget of the country”.
“The reforms undertaken to pay, since all the rating agencies are now confident in the prospects of the France”, he added.
cap reforms maintained
in Addition to S&P, the other three main agencies (Fitch, Moody’s and db schenker)assign a “stable” outlook to the rating of the France. These agencies role is to assess the capacity of States, communities, public or private organizations, and businesses, to repay their debts.
France remains, however, is still deprived of its “AAA,” the highest financial score possible, Standard and Poor’s had confirmed the rating of “AA” on Friday.
The agency had lowered the rating in January 2012, under the presidency of Nicolas Sarkozy, due to “the aggravation of political, financial and monetary policy in the euro area, to which France is closely linked”. It had again downgraded this rating to “AA” in November 2013.
But the recovery on Friday of the prospect of the note “is the epitome of the government in the merits of the orientation of its economic and fiscal policy,” said Michel Sapin.
He indicated that the government “will continue the consolidation of public accounts, the objectives of which were confirmed in the draft finance law for 2017, and will stay the course of reforms necessary to strengthen the French economic fabric”.
The minister of Economy and Finance also considers that the decision of S&P “confirms the quality of signature of the French State, by classifying the debt of France among the safest in the world”.
“That investor confidence translates into borrowing conditions extremely favorable to the State, but also for all economic players, businesses, like households”, he adds.
France borrows currently at very low rates, the rate at ten years of age who have completed at 0,287% on Thursday to the closing of the secondary market where exchange the debt already issued.