Tuesday, October 18, 2011

Moody's To Review France's AAA Rating Due to Latest Bailout Scheme

As the lack of agreement with France and Germany continues, the latest "bailout" scheme is under threat as it becomes clear that money does not grow on trees and debt must eventually be repaid. Moody's ratings agency said that it may give a negative outlook on France's Aaa rating if slower growth and the costs for helping bail out banks and other euro zone members stretch its budget too much.

From its annual report on France."The deterioration in debt metrics and the potential for further contingent liabilities to emerge are exerting pressure on the stable outlook of the government's Aaa debt rating,"

France responded with "We will do everything to avoid being downgraded."

One wonders what "everything" means.

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics