Saturday, December 13, 2014

Fitch lowers rating of France to “AA” – Les Echos

The rating agency, about to become American, believes that the weakness of the French economy threatens the fiscal balance and debt levels .

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L ‘Fitch rating agency lowered Friday the sovereign rating of France by one notch to “AA” against “AA +” previously combining it with a stable outlook. The rating agency says in its press release that the growth in France this year is expected to be lower than the average for the euro area and for the first time in four years.

Fitch adds that the weakness of the French economy threatens the prospects of both fiscal consolidation and stabilization of the public debt ratio. The rating agency placed the long-term rating “AA +” of France “rating watch negative” on 14 October.



Limited impact

In a statement released Friday morning, economists generally believed that the Company’s market impact of a potential deterioration “should be limited.” Moody’s has in turn held 19 September the negative outlook on the rating “Aa1″ it gives to France, the second best. Standard and Poor’s for its part lowered the rating of France for the first time in January 2012 and again in November 2013, to “AA”. The agency revised the outlook to negative from stable on 10 October.

A few hours before this deterioration in France, agende Fitch announced change in ownership. The world number three of the financial rating, will pass in the lap of the information US Hearst plurimedia group. Fimalac holding the side of the French businessman Marc ladreit of Lacharrière, announced it would give him 30% of the group for $ 1.97 billion. Hearst, which already held 50% Fitch, will see its stake up to 80%.

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