Monday, January 16, 2012

France rating could go lower, but no euro zone break up: S&P (Reuters)

BRUSSELS (Reuters) ? France risks another downgrade of its sovereign credit rating if its public debt and budget deficit deteriorate further, Standard & Poor's said on Saturday, a day after it cut the country's top-notch AAA rating by one notch to AA+.

"The deficits could increase from the relatively high levels where they are already and reach certain thresholds in the general government debt and deficit ratios, which might lead to another lowering of the rating," S&P credit analyst Moritz Kraemer told a conference call.

Kraemer said the ratings agency was not considering a breakup of the single currency area and that such a scenario was not being factored into its ratings decisions.

(Writing by Luke Baker and Robin Emmott)

Source: http://us.rd.yahoo.com/dailynews/rss/europe/*http%3A//news.yahoo.com/s/nm/20120114/bs_nm/us_eurozone_sp_france

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