{"id":12427,"date":"2015-09-19T15:21:12","date_gmt":"2015-09-19T20:21:12","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12427"},"modified":"2015-09-19T15:21:39","modified_gmt":"2015-09-19T20:21:39","slug":"moodys-downgrades-france-blames-political-constraints-sees-no-material-reduction-in-debt-burden","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12427","title":{"rendered":"Moody&#8217;s Downgrades France, Blames &#8220;Political Constraints&#8221;, Sees No Material Reduction In Debt Burden"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-09-18\/moodys-downgrades-france-blames-political-constraints-sees-no-material-reduction-deb\" target=\"_blank\">Moody&#8217;s Downgrades France, Blames &#8220;Political Constraints&#8221;, Sees No Material Reduction In Debt Burden<\/a><\/h3>\n<p>Citing\u00a0<em><strong>&#8220;continuing weakness in the medium-term growth outlook,&#8221;<\/strong><\/em>\u00a0Moody&#8217;s has downgraded France:<\/p>\n<ul>\n<li><strong>*FRANCE CUT TO Aa2 FROM Aa1 BY MOODY&#8217;S, OUTLOOK TO STABLE<\/strong><\/li>\n<\/ul>\n<p>Apearing to blame The EU&#8217;s\u00a0<em><strong>&#8220;institutional and political constraints,&#8221;<\/strong><\/em>\u00a0Moody&#8217;s expects French growth to be at most 1.5% and\u00a0<strong>does not expect the debt burden to be materially reduced this decade<\/strong>.<\/p>\n<p><strong><em>Moody&#8217;s Investors Service has today downgraded France&#8217;s government bond ratings by one notch to Aa2 from Aa1. The outlook on the ratings is stable.<\/em><\/strong><\/p>\n<div>The key interrelated drivers of today&#8217;s action are:<\/div>\n<blockquote>\n<div class=\"quote_start\">1. The continuing weakness in France&#8217;s medium-term growth outlook, which Moody&#8217;s expects will extend through the remainder of this decade; and<\/div>\n<div><\/div>\n<div>2. The challenges that low growth, coupled with institutional and political constraints, poses for the material reduction in the government&#8217;s high debt burden over the remainder of this decade.<\/div>\n<\/blockquote>\n<div>At the same time, France&#8217;s credit worthiness remains extremely high, supporting an Aa2 rating. The country&#8217;s significant strengths include: (i) a large, wealthy, and well-diversified economy with a high per capita income, (ii) favourable demographic trends as compared to other advanced economies, and (iii) a strong investor base and low financing costs. The rating and its stable outlook are also supported by the country&#8217;s efforts to stabilise its public sector finances and initiatives recently deployed or announced to arrest the erosion of the economy&#8217;s competitiveness.<\/div>\n<div><\/div>\n<div>In a related rating action, Moody&#8217;s has today announced its decision to downgrade the ratings of the Soci\u00e9t\u00e9 de Prise de Participation de l&#8217;\u00c9tat (SPPE) to Aa2 from Aa1. The SPPE&#8217;s short-term rating was affirmed at P-1, including its euro-denominated commercial paper programme. The outlook on the ratings is stable. The debt instruments issued by the SPPE are backed by unconditional and irrevocable guarantees from the French government.<\/div>\n<div><\/div>\n<div>&#8230;click on the above link to read the rest of the article&#8230;<\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody&#8217;s Downgrades France, Blames &#8220;Political Constraints&#8221;, Sees No Material Reduction In Debt Burden Citing\u00a0&#8220;continuing weakness in the medium-term growth outlook,&#8221;\u00a0Moody&#8217;s has downgraded France: *FRANCE CUT TO Aa2 FROM Aa1 BY MOODY&#8217;S, OUTLOOK TO STABLE Apearing to blame The EU&#8217;s\u00a0&#8220;institutional and political constraints,&#8221;\u00a0Moody&#8217;s expects French growth to be at most 1.5% and\u00a0does not expect the debt [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[9133,240,279,284,333,541,1547,4318],"class_list":["post-12427","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond-rating","tag-economic-growth","tag-eu","tag-european-union","tag-france","tag-moodys","tag-ratings-downgrade","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12427"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12427\/revisions"}],"predecessor-version":[{"id":12429,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12427\/revisions\/12429"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}