News Headline Summary

Fitch affirms France at AAA; Outlook negative

Says:
- The affirmation of France's AAA status is underpinned by its wealthy and diversified economy, stable political, civil and social institutions and its exceptional financing flexibility reflecting its status as large benchmark Eurozone sovereign issuer.
- Expects negative outlook to be resolved in 2013.

Reaction details (02:06)

- No reaction seen across asset classes following this latest affirmation as it indicates no near-term change in the country's sovereign rating at Fitch.

Analysis details (02:10)

- Fitch still has France rated at the highest of the three rating agencies, with S&P and Moody's one notch below at AA+ and Aa1 respectively. All three rating agencies have the sovereign on negative outlook.
- It is worth of note that Moody's downgraded France from AAA on November 19th which led to a downgrade of the ratings on the ESM and EFSF as French is the second largest contributor to the funds.

14 Dec 2012 - 02:01 - - Source: Newswires

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