Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Ebola: Lockdown brings Sierra Leone capital to a halt

Read more

MEDIAWATCH

Sarkozy's political comeback: did he ever leave?

Read more

DEBATE

The World This Week

Read more

FRANCE IN FOCUS

Travel chaos: Air France pilots take industrial action

Read more

THE BUSINESS INTERVIEW

Christian Kastrop, Director of Policy Studies, OECD

Read more

AFRICA NEWS

Ebola: UN Security Council unanimously passes resolution

Read more

ENCORE!

Author Kiran Desai on early success and the Booker Prize

Read more

THE BUSINESS INTERVIEW

Tyler Brûlé, Founder and Editor-in-chief of Monocle

Read more

REPORTERS

From Sarajevo to Guantanamo, the journey of the Algerian Six

Read more

France

To lose AAA rating not a 'cataclysm', Juppé says

Video by William EDWARDS

Text by News Wires

Latest update : 2011-12-15

French Foreign Minister Alain Juppé said in a newspaper interview Thursday that for France to lost its AAA rating "wouldn't be good news, but it wouldn't be a cataclysm either". Ratings agencies have said they are reevaluating eurozone states.

AFP - For France to lose its triple-A debt rating would be bad news but "not a cataclysm", Foreign Minister Alain Juppe was quoted as saying Wednesday, amid rumours a downgrade was imminent.

Since the weekend, French officials have been preparing the ground for a ratings agency to decide that the nation's public finances no longer merit a perfect debt rating, a result once seen as a disaster.

"It wouldn't be good news, but it wouldn't be a cataclysm either," Juppe told the financial daily Les Echos, in an interview conducted on Tuesday.

"The United States lost their triple-A and still manage to borrow on the markets in good conditions," he noted.

Ratings agencies Standard & Poors and Moody's have warned they are looking again at all eurozone member states -- even triple-A powers like France and Germany -- amid fears the bloc's sovereign debts are unsustainable.

Eurozone members have tried to reassure markets by adopting austerity measures and promising to sign a new "fiscal compact" by March that would bind them to tighter budgetary discipline.

But many commentators believe the measures are insufficient to counter the sheer weight of debt being held by countries such as Greece and Italy -- and in turn by private banks in France and elsehere.

All member states have been warned but France is thought particularly vulnerable, despite President Nicolas Sarkozy's vow to defend its rating.

Date created : 2011-12-15

  • USA

    Fitch maintains top credit rating for US

    Read more

  • France

    French economy stalls in second quarter

    Read more

  • UNITED STATES

    S&P downgrades US credit rating from 'AAA' in historic move

    Read more

COMMENT(S)