A political blow to poll-bound Nicolas Sarkozy - The Hindu

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The stripping of France's AAA credit status by the ratings agency Standard & Poor's (S&P) has dealt a serious political blow to French President Nicolas Sarkozy, just three-and-a-half months ahead of the next presidential election. Even though such a development has been considered imminent for weeks, Mr. Sarkozy had himself described the triple-A as an asset that France could not afford to lose.

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The stripping of France's AAA credit status by the ratings agency Standard & Poor's (S&P) has dealt a serious political blow to French President Nicolas Sarkozy, just three-and-a-half months ahead of the next presidential election. Even though such a development has been considered imminent for weeks, Mr. Sarkozy had himself described the triple-A as an asset that France could not afford to lose.  France has now been downgraded to AA+, a spokesperson from S&P confirmed late Friday night. The decision to downgrade France's credit rating was prompted by “the aggravation of political, financial and monetary problems in the eurozone with which France is closely intertwined,” the agency stated. France is Europe's second largest economy and a major influence in European and world politics, considering it is a permanent member of the United Nations Security Council.

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The stripping of France's AAA credit status by the ratings agency Standard & Poor's (S&P) has dealt a serious political blow to French President Nicolas Sarkozy, just three-and-a-half months ahead of the next presidential election. Even though such a development has been considered imminent for weeks, Mr. Sarkozy had himself described the triple-A as an asset that France could not afford to lose.  France has now been downgraded to AA+, a spokesperson from S&P confirmed late Friday night. The decision to downgrade France's credit rating was prompted by “the aggravation of political, financial and monetary problems in the eurozone with which France is closely intertwined,” the agency stated. France is Europe's second largest economy and a major influence in European and world politics, considering it is a permanent member of the United Nations Security Council.  The negative growth perspective for France means that the country's credit rating could be brought down another notch over the next quarter. President Sarkozy is hoping to win a second-term during presidential elections in May.

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A political blow to poll-bound Nicolas Sarkozy - The Hindu

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