Standard and Poor’s raises ratings outlook of France – The Point

A”sign of confidence” : the minister of Economy and Finance, Michel Sapin welcomed Friday the decision of Standard and Poor’s raising the outlook of the rating of France, which passes from negative to stable. The rating agency maintains its rating to ” AA “. In its press release, S&P, which had lowered this perspective in October 2014, explains this improvement by ” the gradual introduction of reforms to boost growth on a background of fiscal consolidation “.

S&P believes that the “risk” of degradation identified at the time are not “materialized” and stressed that “the economic recovery is on track, especially if the rebound in business investment is confirmed, and if employment growth accelerates”. The agency cites in particular “reforms of the taxation and the labour code”, that should be “of the stabilizing effects on employment, growth, competitiveness and the public finances”.

For Michel Sapin, “the reforms businesses to pay”. This upward revision, he said, is “a sign of the agency’s confidence in the economic outlook and the budget of the country”. “This decision strengthens the government in the merits of the orientation of its economic and fiscal policy. It will continue the consolidation of public accounts, the objectives of which were confirmed in the draft finance law for 2017, and will stay the course of reforms necessary to strengthen the French economic fabric”, said Michel Sapin in a statement.

He also considers that this decision “confirms the quality of signature of the French State, by classifying the debt of France among the safest in the world”. “This investor confidence is reflected by the borrowing terms and conditions extremely favorable to the State, but also for all economic players, businesses, like households”, added the minister.

The rating outlook of the Hexagon are now stable for the four main rating agencies are S&P, Fitch, Moody’s and DBRS. S&P was the first agency to deprive France of its triple-A status in January 2012, lowering it by one notch to AA+. And then she had again downgraded to AA in November 2013. Its rating has remained unchanged since.