After hours shots fired, with Moody’s hitting the long overdue one notch gong on France:
MOODY’S DOWNGRADES FRANCE’S GOVT BOND RATING TO Aa1 FROM Aaa
FRANCE MAINTAINS NEGATIVE OUTLOOK BY MOODY’S
Euro tumbling. In other news, UK: AAA/Aaa; France: AA+/Aa1… Let the flame wars begin
From the release:
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.