From MarketWatch, June 3:
S&P lowered its rating on France by one notch
French bond yields were steady on Monday after the country’s rating was lowered one notch by S&P Global Ratings, as the rating agency lifted its budget deficit estimate.
The yield on the 2-year French bond BX:TMBMKFR-02Y edged up to 3.16% from 3.15%, while the 10-year BX:TMBMKFR-10Y eased to 3.12% from 3.13%.
S&P lowered France’s rating to AA- from AA, saying the 2023 budget deficit was significantly higher than it had previously forecast, at 5.5% of GDP, vs. the 4.9% estimated by the country in December. That’s a result of weaker tax revenue than expected, while spending as a percentage of GDP remained the highest in the European Union.
“In our view, France’s track record of budgetary consolidation over the past decades has been weak,” S&P said. “Political fragmentation adds to uncertainty regarding the government’s ability to continue implementing policies that increase economic growth potential and address budgetary imbalances.”
French President Emmanuel Macron has consistently ruled out tax increases, as the country is due to hold an election on June 9 for European Parliament....
....MUCH MORE
Previously:
"Explainer: What S&P's ratings downgrade means for France"
.... S&P said it expected France to miss its 2027 target, forecasting the deficit would stand at 3.5% of GDP then....
3.5%? Pikers. How are you going to get a Potemkin economy at that rate?
Boom times American-style, baby! 6 1/4% of GDP and more to come in 2025 - 2026!
