Standard & Poor's Ratings Services has notified the French and Austria governments of its decision to downgrade the country's triple-A credit rating one notch to double-A-plus. This move marks the long-awaited blow to France's international standing and knocks the country out of the top financial league of the euro zone. The downgrade further complicates efforts by the euro zone to contain the region's long-running debt crisis.
S&P last month warned that downgrades were possible for 15 euro-zone countries, including triple-A rated France, Germany, Austria and the Netherlands. The Financial Times reported Friday that Germany would escape without a ratings cut.
Still, a downgrade for France would all but ensure that the European Financial Stability Facility, the euro-zone's temporary rescue fund, would also lose its triple-A rating, Lewis and other economists noted.
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