S&P leaves economy rating unchanged for France

The reputed economic ratings agency, Standard and Poor's, said Friday that it was leaving its rating for France unchanged at AA+, despite a downgrade four days ago by sister agency Moody's Investment Services. Standard and Poor's said in its published evaluation, however, that it still viewed the outlook for France as "negative." Moody's on November 19 said it was bringing its evaluation for France down a level to Aa1 from Aaa because of concerns about the economic outlook here, the fiscal risks because of low growth and the ability to absorb future economic shocks. The rating agencies have an impact on France's ability to borrow at lower rates and the cost of borrowing for the government on bond markets could rise because of downgrades. Nonetheless, France has one of the lowest borrowing rates in the European Union, along with Germany.