Friday, October 21, 2016

S&P raised the prospect of France – Le Figaro

The rating agency maintains the rating of the French debt, and passes his perspective from “negative” to “stable”. It welcomes the reforms despite the persistence of “fiscal risks”.

In terms of financial ratings, nobody takes the risk of making prognosis. The announcement of Standard & Poor’s on Friday night is proof that this attitude is very wise… Although the debt hexagonal has never been so high (98.4% of GDP at the end of the second quarter, 2170,6 billion euros), the agency has not only maintained its rating at AA, but it has also raised its outlook from “negative” to “stable”. The risk that France will be downgraded in the coming months is now greatly reduced.

In a press release, S&P explains its note, taking into account the progressive implementation of reforms to support the growth of competitiveness, labour market…) and to improve the public finances. She stresses that, despite the persistence of “fiscal risks”, and on the growth, France has “shock absorbers significant”. She reminds us that France has been put under negative outlook, there are more than two years of age due to risks identified, but which have “not materialized”.

Finance minister Michel Sapin immediately “welcomed” this decision, which, according to him, “the epitome of the government in the merits of the orientation of its economic and fiscal policy”, which envisages a public deficit to 2.7% next year. And to insist: this “confirms the quality of signature of the French State, by classifying the debt of France among the safest in the world. This investor confidence is reflected by the borrowing terms and conditions extremely favorable to the State, but also for companies and households”.

In January 2012, the u.s. agency was the first to deprive France of the famous AAA, for reasons primarily related to the euro zone crisis, and its potential effects on the public finances. In November 2013, the Hexagon was then passed to AA, two notches below the highest rating attributed to the countries (Germany, Luxembourg) whose debt is the more reliable.


In green: countries rated AAA (top quality)

In blue: countries rated A – and above (average quality superior and high quality)

In yellow: countries rated B – and above (average quality, inferior speculative and very speculative)

In red: countries rated CCC and below (high-risk and ultra-speculative or in default)


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