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Egan Jones Cuts France To BBB+, Outlook Negative

Tyler Durden's picture


The next Egan Who target is France, which was just cut from A- to BBB+. EURUSD tumbles, unlike what happens when Moody's or S&P downgrades.

Summary text:

French Republic: EJR rates at BBB+ (Neg.) (S&P: AA+) (223727Z FP)

Synopsis: For the most part, over the past 18 months France has been exempted from the rise in funding costs. However, as the crisis evolves, we expect that France will be pressured. The deterioration in France's credit metrics combined with the needed supported for France's banks are likely to pressure the country. A major catalyst is likely to be charges for the weakened periphery countries. Hollande will be under pressure to keep campaign promises which will ultimately hurt credit quality.


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Thu, 06/14/2012 - 14:39 | 2526601 SeverinSlade
SeverinSlade's picture

So we can expect the big 3 (excluding French Fitch of course) to follow suit within 3-6 months.

Thu, 06/14/2012 - 14:44 | 2526627 Pladizow
Pladizow's picture

What's up with the Chinese water torture, just get to it and give them the D- rating they ALL deserve!

Thu, 06/14/2012 - 14:50 | 2526662 Colombian Gringo
Colombian Gringo's picture

I agree. Once the french go to the franc and devalue, my favorite  paris whores will cost less. Oooo La La!

Thu, 06/14/2012 - 14:55 | 2526671 Ahmeexnal
Ahmeexnal's picture

But...but...they just elected a socialist!

Wasn't Jesus Christ Hollande going to save france???

remember, remember, the fifth of november

Thu, 06/14/2012 - 14:58 | 2526690 knukles
knukles's picture

ProvAAnce becomes ProBBBance?

Thu, 06/14/2012 - 14:59 | 2526697 SilverTree
SilverTree's picture

I see London, I see France. I see Tyler's underpants.

Thu, 06/14/2012 - 15:08 | 2526703 hedgeless_horseman
hedgeless_horseman's picture



Tres BBBien Plus!

Thu, 06/14/2012 - 15:14 | 2526738 SilverTree
SilverTree's picture



Banco Santander SA (Santander) is a Spain-based financial institution primarily engaged in the retail banking...


Table of Unusual NYSE Stock Moves From RealTick



Banco Santander, S.A. (ADR) (NYSE:SAN)

Thu, 06/14/2012 - 14:54 | 2526675 SeverinSlade
SeverinSlade's picture

That's only because you're paying for le whores that do not shave. 

Colombian Gringo is long bush/pits.

Thu, 06/14/2012 - 15:02 | 2526706 knukles
knukles's picture

When did Frenchwomen begin shaving and bathing?

Thu, 06/14/2012 - 15:05 | 2526715 CommunityStandard
CommunityStandard's picture

Right after they rejected austerity, despite Merkel's insistence on being more like the Germans.

Thu, 06/14/2012 - 15:39 | 2526922 ronaldawg
ronaldawg's picture

Are there non-whores in France?  INCONCEIVABLE.

Thu, 06/14/2012 - 16:45 | 2527186 ronaldawg
ronaldawg's picture

Hey - for the record I'm married to a French woman from Strausbourg.  She has been in U.S. since 1993 (illegally).  You wouldn't believe how the socialism is ingrained in every one of her thoughts.  She insists that France will make it out of this crisis because of their technology.... he he he

Thu, 06/14/2012 - 15:44 | 2526951 Silver Bug
Silver Bug's picture

The cuts will continue. It is only a matter of time before the US gets massively downgraded.


Buy Silver, Take your Freedom back!

Thu, 06/14/2012 - 15:52 | 2526985 hedgeless_horseman
hedgeless_horseman's picture



It won't affect Treasury Rates, miraculously.

Thu, 06/14/2012 - 14:53 | 2526670 NotApplicable
NotApplicable's picture

Well likely see NATO troops (led by US drones) invade Saline, MI first, in order to take out that terrorist cell called Egan Jones.

After all, it's for the children.

Thu, 06/14/2012 - 14:55 | 2526678 SeverinSlade
SeverinSlade's picture

I can see it now.

"French Extremists bomb little known Egan-Jones rating agency." - CNBS

Thu, 06/14/2012 - 15:00 | 2526699 knukles
knukles's picture

G-7 declares war on miscreants Moodys and S&P

Thu, 06/14/2012 - 15:03 | 2526709 Faceberg
Faceberg's picture

I think you meant, "French patriots defend the honor of France by sabotaging the offices of an obscure capitalist terrorist organization spreading false lies and rumors that debt crisis' cannot be solved by additional debt".

Thu, 06/14/2012 - 16:13 | 2527076 SokPOTUS
SokPOTUS's picture

The U.S. is next (again) soon.  We've nearly burned the $2.1 Trillion Debt Ceiling increase from last summer's stand-off.

Thu, 06/14/2012 - 16:13 | 2527077 q99x2
q99x2's picture

You have to read all the past ZH articles concerning Greece to fully appreciate what kind of torture the readers are into here. We go all out to appreciate every last drip. Then complain about posts that complain about complaining. As far as I can tell this is some kind of new literary phenomenon.

Thu, 06/14/2012 - 14:55 | 2526681 Poetic injustice
Poetic injustice's picture

French intelligence agency have dechipered some of Osama Bin Laden documents, written in French. This 100% authentic document describes Egan Jones as being one of their terrorist cells charged with task of destabilization of France and their allies.

Thu, 06/14/2012 - 15:06 | 2526720 icanhasbailout
icanhasbailout's picture

I have a greater expectation of an investigation of Fitch by some French regulator.

Thu, 06/14/2012 - 15:28 | 2526863 FL_Conservative
FL_Conservative's picture

Francois no es Espana!

Thu, 06/14/2012 - 15:40 | 2526925 Benjamin Glutton
Benjamin Glutton's picture

Egan Jones n'est pas chienne Fitch!

Thu, 06/14/2012 - 21:50 | 2527967 Buck Johnson
Buck Johnson's picture

There getting ready for the big implosion, just you wait.

Thu, 06/14/2012 - 14:43 | 2526602 camaro68ss
camaro68ss's picture

No one could have expected this. Im shocked. But but the Franch people get to retire at 50. Socialism is full bore, there should be dancing in the streets..... I dont understand.

Thu, 06/14/2012 - 14:39 | 2526605 TahoeBilly2012
TahoeBilly2012's picture

French Fried!

Thu, 06/14/2012 - 15:08 | 2526727 Arthor Bearing
Arthor Bearing's picture

Sacred blue!

Thu, 06/14/2012 - 14:40 | 2526612 Fidel Sarcastro
Fidel Sarcastro's picture


Thu, 06/14/2012 - 14:40 | 2526614 Cognitive Dissonance
Cognitive Dissonance's picture

Those dominoes are getting mighty big.

Thu, 06/14/2012 - 14:41 | 2526619 VonManstein
VonManstein's picture


Thu, 06/14/2012 - 14:41 | 2526620 BlandJoe24
BlandJoe24's picture

Tyler, when are the Moody's downgrades of Spanish banks to appear?  (you said it would be today - is it after market close?)

Thu, 06/14/2012 - 14:43 | 2526626 Tyler Durden
Tyler Durden's picture

Most likely

Thu, 06/14/2012 - 14:48 | 2526649 SeverinSlade
SeverinSlade's picture

TD = Sean Egan

Thu, 06/14/2012 - 14:57 | 2526651 BlandJoe24
BlandJoe24's picture

thanks.  Curious: how do you know it's today at all? educated/experienced guess, what they always do following sovereign downgrade, or you've got confirmation/information?

Thu, 06/14/2012 - 15:03 | 2526710 MachoMan
MachoMan's picture

well...  you probably have some decent information flow when you have a lot of site traffic...  by people with a lot of information to divulge...  and then offer them a place to tell you about it...  It's not like all the information received makes it to the front page.

Thu, 06/14/2012 - 14:41 | 2526622 lizzy36
lizzy36's picture

Time to reinforce the Maginot Line.

Thu, 06/14/2012 - 14:47 | 2526644 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Sort of like the Central Banks, from Canada to the Fed, bailing out corporations who hold no allegience to the people of the Nation-States that pay the burden of the debt?

The line between economics, central banking, and finance sure held up well, didn't it Lizzy?

Thu, 06/14/2012 - 14:42 | 2526624 Tsar Pointless
Tsar Pointless's picture

And tells us "Stocks hold gains on Fed hopes".

I wonder how many times I've read "Fed hopes" as the reasoning for a rising stock market over the past four years.

Keep cuttin' them sovereign debt ratings, Mr. Egan Jones, and I'll keep watching the SandP go UP UP UP on the hopes of "The Fed".

Thu, 06/14/2012 - 14:50 | 2526663 Commander Cody
Commander Cody's picture

Tacit admission from the MSM of a manipulated market dependent on free money from central planning.

Thu, 06/14/2012 - 14:54 | 2526677 NotApplicable
NotApplicable's picture

Thank God, WE'RE SAVED!!!

Thu, 06/14/2012 - 14:43 | 2526631 larry david
larry david's picture

Market really doesn't care about downgrades.  In fact this is better than expected because a larger downgrade was actually priced into the ES. 

Thu, 06/14/2012 - 14:52 | 2526667 Cangoroo
Cangoroo's picture

I agree, no major surprise. But I think the Dexia catastrophe is not priced in.  France as central state has a quite transparent balance sheet though, so nothing to worry about. It all depends on French growth prospects.

Thu, 06/14/2012 - 14:46 | 2526634 MarsInScorpio
MarsInScorpio's picture

Proving once again, that given enough time, and exposure through ZH (the Drudge Report of international finance, politics, and their cultural evolution), an honest enterprise can overcome its obscurity and rise to top of the mind awareness.


Thu, 06/14/2012 - 14:47 | 2526648 Tinky
Tinky's picture

ZH=Drudge Report?

If you want to draw an analogy, try Glenn Greenwald.

Thu, 06/14/2012 - 15:00 | 2526700 TruthInSunshine
TruthInSunshine's picture

More like the Jack Anderson of financial reporting.

Thu, 06/14/2012 - 14:45 | 2526639 Byte Me
Byte Me's picture


If that was a EUR/USD 'tumble' then I lost it in the noise.

Bring on Sunday.

Thu, 06/14/2012 - 14:45 | 2526641 Dr. Engali
Dr. Engali's picture

Petulant little upstarts. Looks like the SEC needs to send somebody in and break some kneecaps.

Thu, 06/14/2012 - 14:55 | 2526680 CommunityStandard
CommunityStandard's picture

They might be enough to pull the SEC away from their daily porn-viewing.

Thu, 06/14/2012 - 14:45 | 2526642 BlandJoe24
BlandJoe24's picture

Market still up despite all reality... run by  full tunnel-vision testeterone battle mode - will not be taken down, will not admit defeat, will f-over every bear not matter how "right/realistic" they may be....

Thu, 06/14/2012 - 14:45 | 2526643 RougeUnderwriter
RougeUnderwriter's picture

Ignore the man behind the curtian!

Thu, 06/14/2012 - 14:47 | 2526646 Aunty Christ
Aunty Christ's picture

Meh, how bout downgrading Deutschland since they're going to wind up paying for all this excess?

Thu, 06/14/2012 - 14:56 | 2526685 Cangoroo
Cangoroo's picture

I really do not think so this time ,because Mrs Merkel has virtually sided with the British and  much more important the US.  Geithners last comments were a hint. If Romney becomes president, this will become even more apparent.

Thu, 06/14/2012 - 14:59 | 2526654 Tuffmug
Tuffmug's picture

Egan blew the rating for France. Should have rated it MERDE!, Outlook Flatulent

Thu, 06/14/2012 - 14:52 | 2526668 nobusiness
nobusiness's picture

Wow!  That cost the SPY $0.14  I guess the downgrade of major economic powers doesn't matter anymore.

Thu, 06/14/2012 - 14:53 | 2526673 fuu
fuu's picture


Thu, 06/14/2012 - 15:51 | 2526919 slewie the pi-rat
slewie the pi-rat's picture

_..~ //je\\~.._

Thu, 06/14/2012 - 16:26 | 2527120 fuu
fuu's picture

hahah show off!

Thu, 06/14/2012 - 14:56 | 2526683 Faceberg
Faceberg's picture

Egan Jones doesn't seem to understand how these ratings work. You are supposed to wait until after a default to downgrade for god's sake. The SEC should shut these clowns down, the sooner the beter. How are capital markets supposed to work efficiently if credit ratings agencies give an honest assessment of credit quality?

Thu, 06/14/2012 - 14:57 | 2526689 ebworthen
ebworthen's picture

"Mon Dieu!"

Egan-Jones is on my "like" list (no, not on Farcebook).

Thu, 06/14/2012 - 15:03 | 2526708 Yen Cross
Yen Cross's picture

The French banks are next! First the sovereign downgrades, then their " Store Front" Masters follow suit.

Thu, 06/14/2012 - 15:48 | 2526964 slewie the pi-rat
slewie the pi-rat's picture

the french will re-invent the underground as they subvert the banksters' takeover of the bicyclette baguette

Thu, 06/14/2012 - 15:35 | 2526900 Toolshed
Toolshed's picture

Interesting article on an interesting site. There are some great comedy pieces on there as well. Check out this one, and just try not to laugh too hard! I MUST be comedy.......right?

Thu, 06/14/2012 - 15:09 | 2526714 Euro Monster
Euro Monster's picture

Damn, had plans to retire in France... oh well...

Thu, 06/14/2012 - 15:07 | 2526723 zebra
zebra's picture

soon BBB will be the new AAA..

Thu, 06/14/2012 - 15:09 | 2526728 gaoptimize
gaoptimize's picture

I think the steady pace of all these downgrades has desensitized many to them.  I rememmber when this would have been a big deal.  With Reggie Middleton's coverage, reaction to downgrade announcements have become "what took you so long?"

Thu, 06/14/2012 - 15:10 | 2526742 Auburn
Auburn's picture

Dow up almost 190 now - we're saved   thank you EG and france!  Hope someone is majorly disappointed by Bernack next week.

Thu, 06/14/2012 - 15:13 | 2526765 Bam_Man
Bam_Man's picture

These financial terrorists must be stopped!

Thu, 06/14/2012 - 15:13 | 2526768 debtor of last ...
debtor of last resort's picture

I went on my knees this week in front of my mother. I said no, i don't want to merry you. I just want you to buy gold and silver.


She did.

Thu, 06/14/2012 - 16:23 | 2527110 Sudden Debt
Sudden Debt's picture

Mine: "we're to old to give a fuck about all of this crap"

I've convinced about a dozen people to invest in pm's. None of them in my own family....

Thu, 06/14/2012 - 15:33 | 2526891 anyways
anyways's picture

who the fuck is Egan Jones? Laughable. Better prepared for an epic shortsqueeze in equities, if u ask me.

Thu, 06/14/2012 - 15:44 | 2526950 caimen garou
caimen garou's picture

go do a few chores and i miss all the excitement, go egan balls jones!

Thu, 06/14/2012 - 15:47 | 2526959 Bansters-in-my-...
Bansters-in-my- feces's picture

B...ed and

France is some dive sleep over joint now.

Thu, 06/14/2012 - 16:24 | 2527111 TrainWreck1
TrainWreck1's picture

Now I will be able to afford the Citroën of my dreams!



Thu, 06/14/2012 - 16:31 | 2527136 Tinky
Tinky's picture

Vintage DS Palais?

Thu, 06/14/2012 - 16:33 | 2527143 Monedas
Monedas's picture

If buying French Socialist Shit Paper is would they rate keeping French 20 Franc gold coins in a safety deposit box....bizarre and risky behaviour with questionable investment relevance ?       Monedas     1929       Comedy Jihad Tale Of Two Realities Tour

Thu, 06/14/2012 - 16:53 | 2527202 Monedas
Monedas's picture

These rating agencies should diversify their business models into other risk assessment they will have something to do after the big bang financial implosion !  In the meantime they need to expand the downward scope of their ratings....FFF- (what the fuck) or ZZZ+ (asleep at the keyboard) or ???- (what are you thinking) !        Monedas     1929        Comedy Jihad Managing The Risk Of Unintended Humour Tour

Thu, 06/14/2012 - 17:40 | 2527328 newsguy68
newsguy68's picture

dont wory thtas the new AAA. This will be a interesting week for the euro. Look how the greeks are hoarding canned goods....

Thu, 06/14/2012 - 17:46 | 2527348 Cult of Criminality
Cult of Criminality's picture

Cult of Criminality downgrades USSA to FFF-

Thu, 06/14/2012 - 19:44 | 2527608 zippy_uk
zippy_uk's picture

Zut Alors! Enforced retirement at the age of 60 thanks to the process call "Unemployment" - pity that the pension is not quite what it was - what happened, Mr Hollande ?

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