The rating of France is confirmed – The Tribune.fr

The rating agency Fitch has maintained the AA rating Friday of the long term debt of France, combining it with a stable outlook.

“The economy performed better than expected recently and risks to the outlook are more balanced because of the support by the weak euro and lower oil prices, “said Fitch.

The agency added, however, that it remains “uncertainty about the long-term economic growth potential of France”.

Fitch had downgraded the sovereign rating of the country in December, increasing it from AA + to AA, because of slippage including budget.

A deficit will decline only slowly

On Friday, the agency notes that the budget deficit of France “is high compared to its peers and will decline only slowly “.

About the longer term expansion, Fitch considers the proposed reforms” Macron law “on the growth and activity” broad but not particularly deep. “

The Macron law shallow reforms

“The quantitative impact of this reform agenda is uncertain and the point of view of Fitch, seems not enough to reverse the negative trends that affect the long-term growth and competitiveness “of the country, adds the release.

Referring to the Greek crisis, Fitch believes that Greece will remain a member of the euro area even if it acknowledges that the” Grexit ” is a “significant risk”.

“Even if a Greek exit” of the euro “would be a significant blow to the euro zone could trigger a volatility access the financial markets and weaken confidence, “the agency does not believe that this” would provoke a systemic crisis like that of 2012 neither the quick exit of another member country. “

” The government’s fiscal effort is smaller than recommended by the European Commission in March but with a realistic projection of a deficit below 3% in 2017, Fitch does not expect further action on the part of Europe, “said the agency.