This is How Moody’s Spells FrAAnce…

19 Nov

MOODY’S DOWNGRADES FRANCE’S GOVT BOND RATING TO Aa1 FROM AAA

Moody’s decision to downgrade France’s rating and maintain the negative outlook reflects the following key interrelated factors:

1.) France’s long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labour, goods and service markets.

2.) France’s fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above.
 
3.) The predictability of France’s resilience to future euro area shocks is diminishing in view of the rising risks to economic growth, fiscal performance and cost of funding

Let’s adopt some of those tasty Euro Communist policies – worked out well for France…

The Euro responded about as expected…

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/11/EURUSD%2011.19.jpg

And it looks like more EU downgrades are on the way

Moreover, Moody’s currently also holds negative outlooks on those Aaa-rated euro area sovereigns whose balance sheets are expected to bear the main financial burden of support via the operations of the EFSF, the ESM and the ECB. Apart from France, these countries comprise Germany (Aaa negative), the Netherlands (Aaa negative) and Austria (Aaa negative).

Amazing they were able to hold out until after the US Election…

Zero Hedge

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