Moody’s confirms Aa1 by France and keeps … – Les Echos

+ DOCUMENT The rating agency has not downgraded France, contrary to what was expected. She, however, maintains negative outlook

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To everyone’s surprise, two years after being ousted France of its precious AAA, Moody’s has not struck again. The rating agency decided to confirm Aa1 by France, while maintaining the negative outlook.

In a statement, Moody’s said that although subject to adverse pressures, France retains significant advantages in terms of credit, including very low financing rates “ despite a continuous and gradual erosion of its economic and fiscal soundness “. The agency adds that he also considered “ the renewed commitment of the government to accelerate the pace of structural reforms .”

Moody’s also believes that “ levels historically low popularity of the government reflect the pressures it faces “but notes that” the recent parliamentary confidence vote reaffirmed its legislative mandate to implement a series of reforms to promote growth . “

However, she stressed that maintaining the negative outlook reflected in particular” significant risks for implementation of structural reforms “. The agency added that it also takes into account “ persistent overruns deficits and weak growth “.

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Michel Sapin “notes”

The Finance Minister Michel Sapin, a “ noted ” that decision and believes that it “ reflects the consistency of our economic strategy: implementation of the Covenant of responsibility, solidarity and reform to find a more competitive economy, so more growth and jobs in a sustainable manner, and keeping the savings target we set ourselves. “

His colleague of Economy, Emmanuel Macron, said for his part that” France has convinced his determination and ability to reform our country (…) This maintenance involves us because it reinforces the need to continue and deepen structural reforms to remove obstacles that hamper today ‘ hui France . “

However, the financial community was preparing for what Moody’s lowers rating of Aa2 to France. In August, the agency announced it would crack down “ if (his) confidence in the implementation of reforms and their effectiveness was eroding. While prospects for growth in the medium and long term is still deteriorating. Or if (his) expectations about the trajectory of the medium-term debt were close to 100% of GDP “.

But still in August, Moody’s lowered its growth outlook for France to 0.5% for 2014 and said that the deficit target would not be achieved . This has recently been confirmed by the French government. Furthermore, we now know that the public debt will come close to 100% of GDP in 2015. The decision of the rating agency is a real surprise in more ways than one.

Moody’s confirms rating of the United Kingdom after the “no” Scottish

The agency affirmed the rating of financial solvency of Britain (“Aa1″), believing that the victory of the “no” to the Scottish referendum allowed to “preserve” the institutional and financial framework of the country.
The agency also indicates the prospect of the country remains “stable”, suggesting that it did not intend to change its rating, one of the best in the coming months.