Standard and Poor’s does not degrade the rating of France – Les Echos

S & P maintained Friday AA rating of France, and commending the efforts of reform even if it considers Paris too optimistic about deficits and jobs. The “stable” rating outlook this is also maintained for the next two years which means “risk factors weighing on the credit quality of France are balanced, and the possibility of an increase or a downgrade in the next two years is less than one in three. “

Standard & Poor’s believes that the current government “clearly stands out” by his efforts to reduce spending while “seems progress towards structural reforms to improve the business environment.”

DOCUMENT – S & P Rating of France maintained degraded Russia

“The plan to reduce the cost of labor and corporate taxation may enhance the competitiveness and growth potential of the economy in the medium term,” even though in the short term “effect on growth is uncertain because it depends the evolution of investment spending by the private sector and how it will compensate or not the decline in public expenditure “judge the agency.

Bémol However, Standard & Poor’s considers the French government too optimistic on deficit reduction, writing in a statement: “We expect that the public deficit will reach 3.8% of gross domestic product in 2014 and decline to 2, 7% in 2017, “where Paris hopes to reach a ratio of 1.3% in 2017.

Moreover, measures of” Covenant could s ‘prove insufficient to boost employment, “is the primary objective of the Covenant of responsibility, says Standard & Poor’s

rating. degraded Russia

The rating agency Standard & Poor’s lowered the credit rating Friday Russia “BBB” to “BBB-” and kept its outlook to “negative” because of growing tensions between Russia and Ukraine.
“The tense geopolitical situation between Russia and Ukraine could see significant additional outflow of foreign capital as citizens of the Russian economy, and could suddenly undermine already weak growth prospects, “the agency said in a statement.
She announced her decision as tension continues to rise around the situation in Ukraine and Moscow was sentenced Thursday in a stark warning that the United States threatened to impose new sanctions on its against it.
S & P warns that it could lower the rating again if the country “more severe sanctions” applied to Russia.
It could also lower the rating again Russia if it sees “increased for the solvency of Russia risks, due to much lower than expected economic growth.”
The agency notes that Russia’s economic growth slowed to 1.3% in 2013 , “its lowest level since 1999.” “If geopolitical tensions do not improve in 2014, there is a significant risk that growth falls well below 1%,” she warns.