S&P warns of strong chance French rating will fall again
RATINGS agency Standard & Poor's (S&P) yesterday warned of a one in three chance that France will lose its AA+ credit rating over the next year and a half.
It comes just six months after France lost its top 'AAA' rating for the first time. S&P's latest warning comes just hours after the election of Socialist Party candidate Francois Hollande as France's new president.
The agency said the election had no immediate impact on its unsolicited sovereign credit ratings or the outlook on the ratings.
"S&P takes no political position regarding individual candidates or the outcome of any elections," it said in a statement.
"Nevertheless, the policies of a country's government have a direct bearing on its creditworthiness. Our sovereign ratings, therefore, incorporate our view of the likely consequences to a sovereign's credit profile of policies adopted by its elected public officials."
The agency said it would analyse Mr Hollande's policies, taking into account the outcome of the parliamentary elections in June before revising the French rating.