After Standards and Poors (S&P), now Moody’s is getting a pressure to reduce the Credit Ratings of France. Similar to S&P, it has kept France in the top most category of AAA rating but recently S&P decreased its Credit Rating to AA+ which is creating an extra pressure on Moody's to do the same.
It has kept the ratings unchanged on Monday but made a strong statement that it will look back to their Economic Growth Rate later this Quarter. According to the agency, France has got limited options to cut down its expenses and pay back the National fund loss and loans.
Now, it depends upon the success of Government measures, taken in order to improve the Economical conditions that, whether the Credit rating of France will remain unchanged or will be decreased. France’s fiscal deficit is projected to fall to 4.8% of GDP and its economy will expand 0.6% this year.
“The AAA rating of the French government may come under pressure if general government debt in relation to nominal GDP continues to accumulate without signs of stabilizing at a highly affordable level,” Moody’s said.
It has kept the ratings unchanged on Monday but made a strong statement that it will look back to their Economic Growth Rate later this Quarter. According to the agency, France has got limited options to cut down its expenses and pay back the National fund loss and loans.
Now, it depends upon the success of Government measures, taken in order to improve the Economical conditions that, whether the Credit rating of France will remain unchanged or will be decreased. France’s fiscal deficit is projected to fall to 4.8% of GDP and its economy will expand 0.6% this year.
“The AAA rating of the French government may come under pressure if general government debt in relation to nominal GDP continues to accumulate without signs of stabilizing at a highly affordable level,” Moody’s said.
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