8. November 2013

France Long-Term Ratings Lowered To 'AA'

On Nov. 8, 2013, Standard & Poor's Ratings Services lowered its unsolicited long-term foreign and local currency sovereign credit ratings on the Republic of France to 'AA' from 'AA+'. At the same time, we affirmed our 'A-1+' short-term ratings. The outlook is stable.

The downgrade reflects our view that the French government's current approach to budgetary and structural reforms to taxation, as well as to product, services, and labor markets, is unlikely to substantially raise France's medium-term growth prospects. Moreover, we see France's fiscal flexibility as constrained by successive governments' moves to increase already-high tax levels, and what we see as the government's inability to significantly reduce total government spending.

France Long-Term Ratings Lowered To 'AA' On Weak Economic Growth Prospects And Fiscal Policy Constraints; Outlook Stable. Publication date: 08-Nov-2013 06:03:42 GMT