moody\s cuts top french rating terms outlook negative
Last Updated : GMT 12:59:49
Arab Today, arab today
Arab Today, arab today

Moody\'s cuts top French rating, terms outlook negative

Arab Today, arab today

Arab Today, arab today Moody\'s cuts top French rating, terms outlook negative

Paris - AFP

France came under fresh economic pressure late Monday as the international ratings agency Moody\'s cut the French government bond rating by one notch from the highest level to \"Aa1\" and warned that an additional downgrade was possible. Moody\'s was the second of the three major ratings agency to cut France\'s top rating, after Standard and Poor\'s did so in January. Fitch has maintained its assessment of French debt so far. In keeping France on a negative outlook, Moody\'s signalled that its rating could be cut again in the medium term, and the news came against a background of political tension between President Francois Hollande and allies on the left, but also amid intense political bickering among the opposition. Moody\'s statement pointed to many structural problems with the French economy which made it harder to compete on a global level, noting that Paris could face fiscal issues in the future and that it was exposed to demands for financing from heavily-indebted eurozone partners. The ratings agency took note of reform plans that have been unveiled by the new Socialist French government, but added: \"The track record of successive French governments in effecting such measures over the past two decades has been poor.\" French Finance Minister Pierre Moscovici told AFP the downgrade was an \"indictment of past management,\" a reference to the previous conservative government, which would incite the new government to \"quickly put into effect\" the already announced reforms. France is still \"well rated,\" Moscovici pointed out, while insisting that \"this decision concerns the situation left by our predecessors.\" Moody\'s said its decision was based on three factors, the first of which was \"the risk to economic growth, and therefore to the government\'s finances, posed by the country\'s persistent structural economic challenges. \"These include the rigidities in labour and services markets, and low levels of innovation, which continue to drive France\'s gradual but sustained loss of competitiveness and the gradual erosion of its export-oriented industrial base.\" The International Monetary Fund and the COE-Rexecode Institute, which is close to French employers\' associations, have also warned that France could lose market share to countries from southern Europe that have approved robust economic reforms. \"As a result, Moody\'s sees a continued risk of fiscal slippage and of additional consolidation measures. Again, based on the track record of successive governments in implementing fiscal consolidation measures, Moody\'s will remain cautious when assessing whether the consolidation effort is sufficiently deep and sustained,\" the statement said. France\'s fiscal perspectives were further undermined by \"subdued domestic and external demand,\" in part owing to tax increases and weak growth in disposable income. Finally, Moody\'s warned that Paris could find itself on the hook to finance bail-outs for eurozone partners via the European Stability Mechanism (ESM), and noted: \"France is disproportionately exposed to peripheral European countries such as Italy through its trade linkages and its banking system.\" The ratings agency said that \"the predictability of France\'s resilience to future euro area shocks is diminishing.\" Moody\'s stressed that France still had an excellent rating because of its \"significant credit strengths,\" a \"large and diversified economy\" and \"the government\'s commitment to structural reforms and fiscal consolidation.\" But it maintained France\'s negative outlook owing to the eurozone economic recession and \"substantial\" challenges to the government\'s reform plans. The downgrade put France behind eurozone partners like Finland, Germany, Luxembourg and the Netherlands, which have retained top AAA ratings though they all have a negative outlook from at least one of the three agencies. It came less than a week after the British weekly The Economist called France \"the time-bomb at the heart of Europe\" for many of the same reasons as those pointed to by Moody\'s. Meanwhile however, the Financial Times ran an editorial piece on Monday in which Wolfgang Muenchau noted that France \"has often defied negative expectations\" and \"is often more resilient than forecasters and commentators generally acknowledge.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

moody\s cuts top french rating terms outlook negative moody\s cuts top french rating terms outlook negative

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

moody\s cuts top french rating terms outlook negative moody\s cuts top french rating terms outlook negative

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Online exhibit shows hidden depths of

GMT 11:45 2017 Thursday ,23 November

Online exhibit shows hidden depths of
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday