The US credit rating agency Standard & amp; Poor’s maintained today “AA” rating of France. “We believe that French institutions and the economy support the quality of state credit, says S & amp; P We believe the government will hold its fiscal target in 2015 but that its 2017-2018 fiscal targets are less secure.”.
S & amp; P confirmed, however, the negative outlook for the rating of the French debt. Which means “the possibility that we lowered the long-term rating next year is at least one in three.” “The outlook remains” negative “, reflecting the risks in our view on the trajectory of the public debt and the risk that competitiveness support measures to be watered down before the presidential elections of 2017″.
The rating agency would be led to the downgrade of French debt if “the deficit did not shrink as we currently expect or if we perceive that the government could undermine support measures for competitiveness”. Conversely, the prospect will be reduced to “stable” if “the economic recovery is in line with our expectations or if the authorities confirm the reforms”
S & amp;. Had P downgraded last When the rating of France in November 2013, passing it from AA + to AA and had revised its outlook from “stable” to “negative” in October 2014. After obtaining the European Union two years more, until at 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 certte 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 an economic growth scenario of 1.0% this 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.
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