French Finance Minister Confirms Triple-A Downgrade, Confirming Rumors
THE TAKEAWAY: Finance Minister Baroin confirms France downgraded one notch to AA+ > Markets had already priced in the possibility > EUR steady at a lower level
French Finance Minister François Baroin confirmed on Friday that France would be among the Eurozone countries to be downgraded by S&P on Friday. With the one-notch downgrade to AA+, France becomes the latest country to lose its triple-A rating. Other countries in the region expected to be downgraded include Austria, Spain, Portugal, Italy, and Belgium; meanwhile, Germany is expected to retain its top rating. The Euro was steady against the Dollar and even recovered slightly following the news as rumors about a downgrade earlier in the day had already pushed the currency as low as $1.2621. A formal announcement from S&P is expected on Friday evening (GMT).
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