Standard & Poor’s confirmed its AA rating of France. This note, assumed to represent the confidence that investors can have in the ability of France to repay its loans, should be stable according to the agency. This calculation takes into account the policy of France, and in particular the budgetary and economic policies.
The rating agency Standard and Poor’s (S & P) raised the prospect Friday of the note “AA” of France, going from negative to stable. The government welcomed a “sign of confidence” in the country’s economic prospects.
Nearly two years after having placed the rating of France on a negative outlook, the US agency has raised, highlighting “the gradual introduction of reforms to boost growth over fiscal consolidation fund”.
The “risks” of degradation that S & P had identified then are not “materialized”, she said in a statement, noting that “the economic recovery is on track, especially if the rebound in investment business is confirmed, and if employment growth accelerates “.
Tax reform and the labour code
The agency highlights in particular “the reforms of tax and labour code” , which should be “stabilizing effects on employment, growth, competitiveness and public finances” .
The Minister of Economy and Finance Michel Sapin ruled that the upward revision was “a sign of the confidence of the agency in the economic and fiscal outlook of the country” and that “the reforms were paying”.
“This decision reinforces the government in the correctness of the direction of economic and fiscal policy. He thus continue the consolidation of public accounts, the objectives were confirmed in the draft budget law for 2017, and stay the course of reforms to strengthen the French business,” said Michel Sapin in a statement.
More favorable borrowing conditions
It also believes that the decision “confirms the creditworthiness of the French State, by classifying the debt of France among the safest in the world”.
“This investor confidence resulting in extremely favorable borrowing conditions for the state, but also for all economic actors, like households enterprises”, added the Minister.
It also recalls that the outlook for the rating of France are now stable for the four main rating agencies such as S & P, Fitch, Moody’s and DBRS.
Standard and poor’s was the first agency to deprive France of its triple-A in January 2012, lowering it one notch to AA +. Then she had further deteriorated to AA in November 2013. His rating has remained unchanged since.