S & P maintained the rating of France, but … – Les Echos

+ DOCUMENT The rating agency maintained its “AA” but instead a negative outlook. She is concerned about the weak recovery of the French economy and public finances

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Standard and Poor’s on Friday confirmed the sovereign rating of France long term AA but revised its outlook to negative from stable. The rating agency had downgraded the French rating for the last time in November 2013, from AA + to AA, by associating a stable outlook, and confirmed the rating and outlook in April.

The revised outlook reflects the fact that the strength of the recovery of the French economy is not guaranteed and the public finances could deteriorate beyond 2014, says S & amp; P a statement. The rating of France remains supported by the high per capita income, productivity and diversification of the French economy and the stability of its financial sector, says the agency.

In a statement released Friday night by Bercy, Michel Sapin says it “takes note of the decision by Standard and Poor’s to maintain the long-term rating of France to ‘AA’ and placing the perspective of ‘stable’ to ‘negative’. It reaffirms the quality of the signing of the French State “

S & amp;. P more pessimistic about the deficit

S & amp; P revises also its public deficit forecast for France to 4.1% of gross domestic product (GDP) on average over the 2014-2017 period, against 3.2% previously. The agency expects the French economy growth of 0.5% of GDP in 2014, 1.1% in 2015 and 1.5% in 2016-2017.

The France plans to reduce its public deficit will slightly next year to 4.3% of GDP against 4.4% this year and to achieve EU limit of 3% in 2017, two years later as previously thought. The government retained a 1% growth in 2015 assumed in the preparation of the draft budget law.

France is rated AA1 with negative outlook by Moody’s and AA + with perspective Stable by Fitch.

SP also lowers EFSF perspective

The ratings agency Standard and Poor’s in the wake downgraded the outlook of the European Financial Stability Facility (EFSF) to negative from stable. Rated “AA” EFSF is confirmed, said S & amp; P. “We are revising our outlook on the rating of the European Financial Stability Facility (EFSF) to negative from stable to reflect the revision of the rating outlook of France’s second-largest guarantor,” the agency said.

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