RATING The American rating agency Standard and Poor’s revised the rating outlook of long-term credit “AA “to” negative “against” stable “…
The American rating agency Standard and Poor’s on Friday launched a warning to France, by revising the perspective its credit rating for long-term “AA” to “negative” against “stable”. 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.
Marie-France Raynaud, Senior Analyst of the rating agency for France, detailed three reasons for this decision. She said it was “the most degraded budget deficit” than expected and felt he could “deteriorate further” due to “flexibilities reduced revenue.” Marie-France Raynaud also stressed that the objective of “stabilization of debt (was) postponed.”
Michel Sapin repeated that the French debt remained “one of the safest in the world”
Finally, 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.
Marie-France Raynaud low inflation “There is a lack of strong track record in terms of implementing reforms in France,” Has she said, also citing possible social resistance. Stressed that a Europe-wide phenomenon, was a “very important” in the decision concerning France, because of its harmful role for public finances. S & amp; P believes that the average fiscal 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
. Finance Minister Michel Sapin played down the announcement from Standard and Poor’s, repeating in a statement that the French debt remained “one of the safest in the world.” French bonds are trading at a very low rate in the markets, despite successive downgrades.
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