View more on these topics

Moody’s warns France on losing Aaa rating

Rating agency Moody’s has warned that France may be the next nation at risk of losing its Aaa debt rating.

The agency says although France’s economy has ample capacity to absorb shocks, the Aaa rating rests on investor confidence in the government’s ability to cope with “unforeseen challenges”.

France now has the weakest in debt metrics of all its peers and while its current financial strength is “very high”, there is the increased likelihood that France will be called upon to support other sovereign debt sheets or its own banking system.

Such contributions could “give rise to significant new (contingent) liabilities for the government’s balance sheet”, says Moody’s.

“Moody’s notes that the French government now has less room for manoeuvre in terms of stretching its balance sheet than it had in 2008”, the ratings agency states.

The French economy will be closely monitored by the agency over the next three months in order to assess progress and any potential liabilities.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com