Photo: Lynn.art, Wikimedia Commons
When S&P came to Treasury on Friday and told them of its intent to downgrade the US, the immediate response was, according to POLITICO: But what about France?France has a AAA rating, but its debt metrics are just as ugly, and it potentially has to shoulder the burdens of the rest of the Eurozone, AND it can’t print its own money.
Well the French AAA rating might not last for long.
FT Alphaville cites Gary Jenkins of Evolution Securities who speculates that it’s only a matter of time before the AAA-rated sovereigns of Europe find themselves on the chopping block.
Any expansion of the European Financial Stability Fund (which for now is not the plan) would certainly put a huge burden on Europe’s “core” — France and Germany.
Via Bloomberg, UBS’ Paul Donovan also thinks France may be the next to lose it.
Meanwhile, the CAC-40 (France’s main index) is a big loser on the day, as it’s currently down 1.8%.
For more on Europe this morning, see here.