France to Lose AAA From S&P

heero_yuy · 13-01-2012, 17:39

Quote:

Jan. 13 (Bloomberg) -- Standard & Poor’s is stripping France of its AAA credit rating for the first time, Agence France-Presse reported, citing an unidentified government official.

One hesitates to gloat (not) but after Sarkosi's bullish statements that the UK should lose it's AAA rating before France there is a certain warm feeling.

Source

Sirius · 13-01-2012, 18:23

Quote:

Originally Posted by heero_yuy

One hesitates to gloat (not) but after Sarkosi's bullish statements that the UK should lose it's AAA rating before France there is a certain warm feeling.

Source

That has just made my day

**Chris** · 13-01-2012, 18:27

Hahahahahaha .... Sorry, childish I know but after Sarko's arrogant posturing all over Europe - often at our expense - a good slap is well deserved.

Hom3r · 13-01-2012, 18:36

Lol lol lol lol lol lol lol lol lol lol lol lol

denphone · 13-01-2012, 18:46

Quote:

Originally Posted by Chris

Hahahahahaha .... Sorry, childish I know but after Sarko's arrogant posturing all over Europe - often at our expense - a good slap is well deserved.

+1

**Chris** · 13-01-2012, 19:28

Now publicly confirmed by France.

http://www.bbc.co.uk/news/business-16552623

**Damien** · 13-01-2012, 19:33

Well I am less happy about this. A weaker Eurozone doesn't help us, granted the debt downgrade alone isn't a problem and may even help us lend at lower rates and we continue to be seen as a safe haven. However if this weakens the Eurozone countries to the extent that it causes a Greece or Italian style crisis then our own banks are exposed to that debt, certainly our banks and markets will be less confident of that debt.

---------- Post added at 19:33 ---------- Previous post was at 19:29 ----------

Quote:

Originally Posted by Chris

Hahahahahaha .... Sorry, childish I know but after Sarko's arrogant posturing all over Europe - often at our expense - a good slap is well deserved.

Whilst I have no sympathy for the government of France their downgrade isn't so much a result of mistakes they made (well, other than joining the Euro in the first place) but a result of being in the Eurozone. Sarkozy's posturing was a attempt to shift blame from himself to external factors ahead of a difficult election. Something our own press and, sometimes, minsters are not above doing.

martyh · 13-01-2012, 19:58

Austrias has been downgraded now

breaking news on sky ...link to follow

---------- Post added at 19:53 ---------- Previous post was at 19:46 ----------

and italy

---------- Post added at 19:58 ---------- Previous post was at 19:53 ----------

http://news.sky.com/home/business/article/16148669

Quote:

France, Austria and Italy have all had their credit ratings downgraded by ratings agency Standard & Poor's.

France and Austria now both hold AA+ ratings, while Italy, which formerly held a BBB+ rating, now finds itself with on BBB.
More countries are expected to be downgraded in the next few hours.

Tuftus · 13-01-2012, 20:36

Seriously, who are these ratings agencies and why should anyone take note of them?

In a very simplistic view (mine) If I wanted to apply for a loan, which I just did for a laugh. The result comes back as 'Computer says NO!'

Does the computer know that I have £600 disposable income a month that I 'could' have used to repay the loan? No. They are just going on what the computer says, not common sense and human judgement.

End of the day, I will plough that £600 in to my savings each month and buy a car for cash and not pay any bank any interest.

Who is laughing now bankers? Yes, that would be me, your dependancy on these agencies has lost you business in my case.

**Maggy J** · 13-01-2012, 20:45

Doesn't the fact remain that we are still at risk of being downgraded?

papa smurf · 13-01-2012, 20:48

Quote:

Originally Posted by Maggy J

Doesn't the fact remain that we are still at risk of being downgraded?

just enjoy the moment

**Maggy J** · 13-01-2012, 20:51

I can't.The entire world is in financial meltdown and it cannot end well for anyone.Crowing over other's misfortunes is asking for trouble.What goes around,comes around again.

nomadking · 13-01-2012, 20:52

If it wasn't for the rating agencies, either everybody would do their evaluation of risk etc(which could be a worse rating) or agencies would spring up anyway to do the donkey work for potential investors.

The rating agencies have to be able to justify their decisions and it's not as if there isn't any basis for their ratings. The ratings are not so much about the current state of any economy, but what it will be like in 5 or more years time.

martyh · 13-01-2012, 20:54

Quote:

Originally Posted by Maggy J

I can't.The entire world is in financial meltdown and it cannot end well for anyone.Crowing over other's misfortunes is asking for trouble.What goes around,comes around again.

This should make you feel better then

Quote:

More countries are expected to be downgraded in the next few hours

http://news.sky.com/home/business/article/16148669

worrying times

Osem · 13-01-2012, 21:25

Hearing unattributed reports that President Sarkozy has been been seen with steam coming out of his ears.

Shoot the messenger and blame the English appears to be his tactic....

I was listening to a very good debate on the radio this evening about this subject and an economist was saying that the reasons the UK hasn't lost its AAA rating are that our banks have already been recapitalised, they don't have the same exposure to places like Greece and Hungary, we have at least shown a willingness to embrace austerity measures and finally, being outside the Euro straightjacket means we have the ability to act unilaterally and take action accordingly.

Having said all that, and in contrast to Sarkozy who it seems would delight in the UK economy being ruined, I believe the UK's interests are to see the ratings of the French and other major EU players at AAA. However this has to be achieved because of the financial and political realities not in spite of them.