PARIS (Reuters) – Standard & amp; Poor’s on Friday confirmed the long-term AA rating of the sovereign debt of France and the negative outlook attached to it.
In a statement, the rating agency said think that the government will keep its targets for this year on public finances but as 2017 and 2018 are “less secure”.
The “negative” outlook indicates the possibility of lowering the long-term rating next year is at least one in three, says the rating agency.
It reflects “the risks to the trajectory of the public debt – a weaker economic recovery in nominal and real terms or lesser fiscal performance – as well as the risk that competitiveness support measures to be watered down before elections Presidential 2017, “said S & amp; P.
S & amp; were P downgraded last note of France in November 2013, passing it from AA + to AA and had revised its outlook from “stable” to “negative” in October 2014.
She was then raised fears about the strength of the economic recovery in France and the further deterioration of its public finances.
After getting two EU more years, until the end of 2017 to bring its deficit below 3% of GDP, the French government introduced in April a new trajectory of public finances.
This provides a public deficit reduced to 3.8% of GDP this year and 3.3% in 2016 and 2.7% in 2017, with a public debt would peak at 97, 0% of the national wealth next year before declining slightly to 96.9% in 2017.
These forecasts are based on a growth scenario of 1.0% of the economy year and 1.5% the following two years. International organizations and the Bank of France expect between 1.1% and 1.2% this year, 1.3% and 1.5% in 2016.
The AA rating is the fourth in the scale S & amp value;. P
France is rated Aa2 with a stable outlook by Moody’s and AA with a stable outlook by Fitch
(Yann Le Guernigou)
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