France's Sovereign Rating Still Being Reviewed By Moody's
January 16, 2012
Europe Update: Moody’s Reviewing France’s Rating
With S&P having downgraded France’s sovereign debt rating on Friday, the markets are likely expecting to hear from the other rating agencies in short order.
On Monday, Reuters reports that Moody's is still assessing its stable outlook on France's AAA rating. Moody’s says they will update the rating during the first quarter.
"Over the next three months, Moody's will monitor and assess the stable outlook against the government's progress in implementing necessary economic and fiscal reform measures, while taking into account any adverse economic or financial market developments," a spokesman for Moody's said Monday.
Moody’s also said that France’s rating could come under pressure if the country’s Debt/GDP ratio continues to rise and if Eurozone crisis worsens further.
The rating firm said the deterioration of debt metrics and the potential for contingent liabilities are currently putting a negative slant on its outlook
Moody’s added that France currently has less room to maneuver with its public finances than they did in 2008.
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