France lost its prized “triple A” credit rating again after being downgraded this time by Fitch ratings agency on Friday.
France’s credit rating was lowered to AA+ from AAA as Fitch cited large debt and uncertain economic outlook as well as a need for structural reform. The outlook remains “stable”.
Standard & Poor’s was the first agency to downgrade France, giving it an AA plus with a negative outlook. Moody’s rates it Aa1 with a negative outlook.
France is the Euro zone’s second largest economy and so this downgrade is a blow to investor confidence as the region’s debt crisis remains in focus and risks flaring up as Portugal and Greece continue to weigh down the bloc.
Meanwhile, the downgrade news is also a wake up call for President Francois Hollande as his government battles to boost the struggling French economy.
Finance Minister Pierre Moscovici said in a statement following the Fitch downgrade that the French government was committed to cutting its public deficit and restoring jobs and growth.
He noted that Fitch had kept a stable outlook on the credit rating and said that reflected France’s efforts to reform its labour market and pension system, and the reduction in the banking sector’s risk exposure.
France lost its prized “triple A” credit rating again after being downgraded this time by Fitch ratings agency on Friday.
France’s credit rating was lowered to AA+ from AAA as Fitch cited large debt and uncertain economic outlook as well as a need for structural reform. The outlook remains “stable”.
Standard & Poor’s was the first agency to downgrade France, giving it an AA plus with a negative outlook. Moody’s rates it Aa1 with a negative outlook.
France is the Euro zone’s second largest economy and so this downgrade is a blow to investor confidence as the region’s debt crisis remains in focus and risks flaring up as Portugal and Greece continue to weigh down the bloc.
Meanwhile, the downgrade news is also a wake up call for President Francois Hollande as his government battles to boost the struggling French economy.
Finance Minister Pierre Moscovici said in a statement following the Fitch downgrade that the French government was committed to cutting its public deficit and restoring jobs and growth.
He noted that Fitch had kept a stable outlook on the credit rating and said that reflected France’s efforts to reform its labour market and pension system, and the reduction in the banking sector’s risk exposure.
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