The Student Room Group

French Credit Ratings

According to the BBC, its set to be downgraded:

http://www.bbc.co.uk/news/business-16215365

Opinions?
Le lol.
Reply 2
Lol good thing Cameron got us out of that fiscal union.
These ratings for governments aren't really that important for investors, they are more important for newspapers and politicians as it reflects a "loss of prestige".

Ratings agencies are useful for investors when it comes to rating the credit worthiness of private companies but it's easy to get information on governments' accounts and get an idea of how risky or otherwise it is to invest in them.

The US lost its AAA rating and it didn't affect the rate of interest on US borrowing and it probably won't with France either or the UK if we lose ours next year which may happen.

However if we lose ours next year it will be damaging for the Chancellor as one of his defences against low UK growth is "yes but under Labour we were placed on AAA 'negative watch' and I have secured our AAA rating because the markets have confidence in my plan", so if we get downgraded that will be a big embarrassment for him.
Reply 4
It'll lead to a short-term loss in confidence but to be honest the euro is in such a downward spiral I don't see it as being anything more than a small factor in France's decline, albeit it's not terminal (yet). The actual credit rating will just mean a small blip on the day it's announced before it goes back into its usual uncertain state.
Reply 5
France is screwed they will be over 100% debt to GDP when they recapitalise their banks which are near insolvency

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