Developing: Pakistani Plane Escorted by UK Fighter Jets — 2 Men Arrested

Listen to the Buck Sexton Show Live on TheBlaze Radio

Finance

Moody’s Revokes France’s Prized ‘AAA’ Credit Rating

Nov. 19, 2012 9:06pm Jason Howerton

NEW YORK (AP) — Moody’s Investors Service on Monday downgraded France, stripping it of its prized AAA credit rating due to concerns over its prospects for economic growth and its exposure to Europe’s financial crisis.

Moody’s lowered France’s rating one notch to Aa1. It kept the rating’s outlook at negative, meaning it could face future downgrades.

The ratings agency said that it is becoming increasingly difficult to predict how resilient France will be to future euro-area shocks.

But the agency noted that the country’s rating remains high compared with many other European countries. It cited for this France’s diversified economy and “a strong commitment to structural reforms and fiscal consolidation.”

The downgrade will heighten fears that Europe’s debt crisis is spreading from the so-called peripheral nations like Greece, Portugal and Ireland to the core of the euro region. Standard & Poor’s, a rival rating agency, lowered its rating on France’s debt one notch from AAA to AA+ in January, citing the deepening political, financial and monetary problems within the eurozone.

Pierre Moscovici, the French finance minister, blamed the downgrade on the policies of previous governments that had failed to restore the competitiveness of the nation’s economy.

“French debt still remains among the most liquid and safest of the eurozone,” said Moscovici, a member of the ruling Socialist government. “The French economy is large and diversified and the government has shown proof of its serious plan to implement structural reforms and restore public finances.”

The yield on the French 10-year government bond fell 1 basis point, or 0.01 percentage point, to 1.96 percent on Monday. That’s 60 basis points more than equivalent German government bonds, suggesting that investors see them as riskier.

Benghazi, IRS, AP...What's next? Only TheBlaze TV offers the truth from Glenn Beck, Andrew Wilkow, and Real News from TheBlaze. Get instant access and a free trial here.

Back to The Blaze »

Comments (12)

samsilver
Posted on November 20, 2012 at 1:08pm
i got a book with pictures on germanys at the super market in the 1920s how about a million marks
for watermelon and various fruits.but glenn told us a year ago in rep primarys that
big gov spendER rick santarmo was the MAN for us. . an ron paul was crazy???? RIGHT
now that ron paul is gone glenn is jumping on the a/dgenda 21 ban wagon. why now mr beck??
a day late an dollar short.ron paul and posses have been talking this stuff for years.you ever get
the feeling glenn is not telling you everything he can????

BIDEN /FLUKE 2016 THANK YOU SIR MAY I HAVE ANOTHER!!!!!!!

Report this comment
Log in to Reply Reply
thegreatcarnac
Posted on November 19, 2012 at 11:24pm
Well…..the French lasted longer than we did before their credit rating was dropped to AA. Seems we and the French have something in common…….a socialist as president and tons of minorities. That combination will do it everytime.

Report this comment
Log in to ReplyReply
- Small_Al
  Posted on November 20, 2012 at 5:16am
  These downgrades hardly register anymore, they’ve become common place. Case in point, Obama is first president in history to preside over a U.S. credit downgrade and he gets re-elected. Read fresh political commentary at: http://smallcraftadvisorychronicles.blogspot.com
  
  Report this comment
- IndyGuy
  Posted on November 20, 2012 at 10:18am
  French fried…
  
  Report this comment
- G-WHIZ
  Posted on November 20, 2012 at 2:05pm
  Tons of GIMMIE–GIMMIE-GIMMIE Progressive lemmings. Retire at 42 with full pay…with full sociallist health insurance…now how many are left to PAY THE TAXES for your freebee’s??
  Y’all should havebeen downgraded years-ago!!
  
  Report this comment
Netsurfer2
Posted on November 19, 2012 at 11:10pm
I guess the 75% tax on the rich is working heh France??? Taxifornia is heading your direction, keep tooting your horn Obama! After they all jump ship then what? There won’t be much left by the time your done! Have you ever heard “misery want’s misery”? It will be 25 trillion and counting in America in four years and no end in sight as how to pay our way out!

Report this comment
Log in to Reply Reply
rickc34
Posted on November 19, 2012 at 10:47pm
Are we next? No budget since Bush was in office…spending out of control. What will they give us an F? Our debt is greater than the EU.

Report this comment
Log in to Reply Reply
progressiveslayer
Posted on November 19, 2012 at 10:44pm
The French elected a socialist president and their credit rating drops,we ‘elect’ a Marxist POS president and our credit rating drops,looks like a pattern,weird huh?

Report this comment
Log in to Reply Reply
dmerwin
Posted on November 19, 2012 at 10:41pm
Tax the rich at 90%. That’ll fix it.

Report this comment
Log in to ReplyReply
- progressiveslayer
  Posted on November 19, 2012 at 10:46pm
  Hell why not 100%,it won’t help but the parasites will feel better about their POS fraud president.
  
  Report this comment
Impenitent
Posted on November 19, 2012 at 10:19pm
credit? who needs credit when you can print more money…

Report this comment
Log in to Reply Reply
RIGHT_WHERE_IT_HURTS
Posted on November 19, 2012 at 10:16pm
Here it comes…fasten your seat belts…YEE-HAW!!!!

Report this comment
Log in to Reply Reply

It appears that you have Javascript Disabled. Please enable Javascript in your browser preferences for a better user experience on TheBlaze. You can not comment without Javascript enabled.