MOODY'S DOWNGRADES FRANCE TO Aa1 !!!

This will bode well for the markets tomorrow

**sarcasm**

Bullish!

And on a Monday afternoon, too. Whatever happened to Friday (or, at least, Wednesday to prevent Thanksgiving long weekend doom) afternoon for this kind of announcement?

Incidentally, shocking the frogs have been able to hold out this long.

Business Insider‏@businessinsider

Moody's Downgrade France [Full Release] [link to read.bi]

Shock le bleu!

zerohedge‏@zerohedge

Moody's: "The predictability of France's resilience to future euro area shocks is diminishing"

zerohedge‏@zerohedge

France weakness: "gradual, sustained loss of competitiveness and the long-standing rigidities of its labour, goods & service markets" Moodys

Moody's decision to downgrade France's rating and maintain the negative outlook reflects the following key interrelated factors:

1.) France's long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labour, goods and service markets.

2.) France's fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above.

3.) The predictability of France's resilience to future euro area shocks is diminishing in view of the rising risks to economic growth, fiscal performance and cost of funding. France's exposure to peripheral Europe through its trade linkages and its banking system is disproportionately large, and its contingent obligations to support other euro area members have been increasing. Moreover, unlike other non-euro area sovereigns that carry similarly high ratings, France does not have access to a national central bank for the financing of its debt in the event of a market disruption.

At the same time, Moody's explains that France remains extremely highly rated, at Aa1, because of the country's significant credit strengths, which include (i) a large and diversified economy which underpins France's economic resiliency, and (ii) a strong commitment to structural reforms and fiscal consolidation, as reflected in recent governmental announcements, which may, over the medium term, mitigate some of the structural rigidities and improve France's debt dynamics.

In a related rating action, Moody's has also downgraded the ratings of Société de Financement de l'Economie Française (SFEF) and Société de Prise de Participation de l'État (SPPE) to Aa1 from Aaa. Furthermore, Moody's has affirmed the Prime-1 rating of SPPE's euro-denominated commercial paper programme. The outlooks on the ratings of the two entities remain negative. The senior debt instruments issued by the two entities are backed by unconditional and irrevocable guarantees from the French government.


Read more: [link to www.businessinsider.com]

zerohedge‏@zerohedge

Egan-Jones has France at BBB+, outlook negative

I have to ask, do the ratings really matter?

I mean change a A to a A- then to a B, and what outcomes will come of it?

Will be fascinating to see what metals do in overnight trading.

I wonder if Germany will be in Moody's cross hairs next?

Imagine investors and creditors are a herd of deer. Credit ratings are a carnivore. When the predator gets close enough, the herd goes into an instinctual panic and flees the scene like the wind. Which then leads to difficulties for France to borrow money and increased interest rates.

At this point there's nothing to worry about. Their rating is still good.

zerohedge‏@zerohedge

UK: AAA/AAA; France: AA+/AA1... Let the flame wars begin

lol

gotta love shit like this

countries being 'downgraded' by companies

what a fuck up this world has turned into

Cites runny cheese

Wake me when America finally gets downgraded... But the rating agencies won't touch it.

by companies that later invest in the fall of such economies

yep totally fucked up

The only reason this is the case is cos we can still devalue.We'd be close to the Greek situation - if we'd joined the Euro.

Standard and Poor's downgraded it long ago.

Yawn. Worthless opinions from a company based in US working for the bankers. Besides they have US as Aaa. That's pretty retarded having US as Aaa but down grading France. France has better rating in both Dagong and Egan Jones.

zerohedge‏@zerohedge

French Bund spread 71 bps. Was 189 bps in November 2011. The road is now clear

who cares?

the only reliable gauge on the economy is if people are rioting and governments are collapsing

tOMATOS PLANTS IN OR OUT ?

They can always re-sell their enormous Muslim/African population back into slavery.

It worked for the Muslims for hundreds of years, why not the French?

We ain't gonna drown alone. We be sure to hold tight on to those German bootstraps and pull'em down the sink hole with us. The last echo sound won't be 'non non' it will be 'nein nein'.