France and Austria set to lose AAA credit rating

Rating agency Standard & Poor’s is reportedly set to downgrade the credit rating of France and Austria.

A report in the Financial Times, which cites an unnamed official, says France and Austria are set to lose their AAA credit ratings, with S&P about to slash their ratings to AA-.

It also says Germany, the Netherlands, Finland and Luxembourg’s AAA ratings would remain in place.

S&P refused to comment.

Last month, S&P warned 15 out of 17 eurozone countries, including France and Germany, could see their ratings downgraded if efforts were not made to resolve the sovereign debt crisis that has gripped Europe.

In November, the ratings agency mistakenly sent a message to some of its subscribers saying it had downgraded France’s credit rating.

At 4.20, the Cac 40 was down 0.27 per cent to 3191.19.