The Economist (December 3)
As the European “crisis deepens, an alarming prospect looms: that France’s own status could lapse, and thus its clout at the heart of the euro zone. France is by far the most vulnerable of the zone’s six AAA-rated countries.” Many French officials are still pretending a downgrade is unthinkable, but Moody’s has placed France’s rating on watch. In another worrying move, the OECD “cut its 2012 GDP growth forecast for France from 2.1% to just 0.3%, well below the 1% on which the government based its latest austerity plan.” With some forecasting recession, the French could find themselves in the vice of decreased revenue and increased financing costs.
As the European “crisis deepens, an alarming prospect looms: that France’s own status could lapse, and thus its clout at the heart of the euro zone. France is by far the most vulnerable of the zone’s six AAA-rated countries.” Many French officials are still pretending a downgrade is unthinkable, but Moody’s has placed France’s rating on watch. In another worrying move, the OECD “cut its 2012 GDP growth forecast for France from 2.1% to just 0.3%, well below the 1% on which the government based its latest austerity plan.” With some forecasting recession, the French could find themselves in the vice of decreased revenue and increased financing costs.
Tags: Credit rating, Europe, France, Moody's, OECD
