La Tribune Reports S&P May Put France On ‘Negative’ Outlook Within Ten Days

Tyler Durden's picture

For our French speaking readers, this makes it all too clear: "Selon plusieurs sources contactées par La Tribune, l'agence de notation Standard & Poor's pourrait préparer la France à la perte de son "triple A"."

Google Translated La Tribune article:

In ten days, the triple A French risk of being "negative outlook"

New rumor market to offset the rate before the last bond auction OAT of the year this Thursday? Or preparation of minds to the inevitable? According to several sources, Standard & Poor's (S & P) may well announce "shortly" the placement of the AAA rating of France as "negative outlook". This is the first step before the lowering of the rating, the highest, enjoyed the Hexagon. "It could happen in a week or maybe ten days," said a diplomatic source, who adds that there are currently an intense reflection in this direction within the agency.

Threats from other agencies

Another source glide along this announcement should be made public on Friday, but for unknown reasons it was postponed. Ten days, S & P had "accidentally" announced the degradation of France. Soon after, she had confirmed the rating of the country and its "stable outlook". But for several weeks, the French notation is under pressure. The economic downturn makes it less credible because the objectives of reducing deficits displayed by Paris. In late October, Moody's warned that it gave three months to consider whether it should be placed on negative watch the French note.

To avoid a possible negative outlook does not result in a loss of the triple A, two possibilities. Either the economy is improving, which is unlikely in early 2012 according to OECD figures published Monday. Either the government is willing to engage in a third level of rigor, it has always hitherto excluded Valerie Précresse, Minister of the budget.

Borrowing capacity of the European small

For its part, Fitch highlighted the "risks" weighing on the French AAA he nevertheless reaffirmed. If France were to lose its triple A, the European Financial Stability Fund (EFSF) would then see its borrowing capacity significantly reduced. The "strike force" of the EFSF would be unable to respond to attacks against the markets of Italy and against Spain. "If the boss of the EFSF, Klaus Regling, announced Tuesday that the Eurogroup of leverage the fund will not reach 4 to 5, as expected, the European Central Bank remains the only credible option," concludes the source diplomatic, adding that the threat of degradation of France, "especially before the European Council on December 9 dudu, put massive pressure on Angela Merkel on the involvement of the ECB."

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Mr Lennon Hendrix's picture

Negative outlook, bitchez

Rainman's picture

oui, oui..... USA blew off the negative talky talk too and look where it got them 

fonestar's picture

does this mean Sarkozy will be flying standby now?

InternetInfidel's picture

If today was any indication the market will rally on this news.

The Big Ching-aso's picture


Michelin in retaliation to downgrade S&P's cafeteria in Lower Manhattan to an unprecedented minus 3 Stars.


It's like spinning the wheel of fortune and holding your breath every time the bankrupt comes around. You know eventually you will hit it but hoping just not yet. 

The Big Ching-aso's picture



When you get past the hairy female armpits and excessive cheap male colognes the French are wonderful people. 

topcallingtroll's picture

There is a reason french men wear lots of cologne.

phungus_mungus's picture

We We Misure...

Not on my carpet you don't! 

The Big Ching-aso's picture



What do you call a French soldier in retreat?



Well trained.

GOSPLAN HERO's picture

It's beotchez, not bitchez, beotchez.

Have fun with Ebonics.


hedgeless_horseman's picture



The "strike force" of the EFSF would be unable to respond to attacks against the markets of Italy and against Spain.

Oceania has always been at war with Eurasia.

a growing concern's picture

It's probably time to read 1984 again to see what the next step in the playbook is.

SilverIsKing's picture

Did I miss the ZH thread on Barney Fwank's decision not to seek re-election?

hedgeless_horseman's picture

I am pretty sure that Barney gets it in the end.

Joeman34's picture

Figured he was a chubby-bottom...

wee-weed up's picture

Bwarney wants to spend more time with his "family" in the Rumper-Room.

mynhair's picture

Moron Libs care.


Oh, look!  A moron Lib with a thumb!

surf0766's picture

How does this jive with Italy going belly up in ten days?

mynhair's picture

No.  No.  No.

Eyetalia goes bottoms up.  Better that way.

New_Meat's picture

"Eyetalia goes bottoms up. "

And Bawney Fwank, today

don't cha' know.

- Ned

fonzanoon's picture

Negative outlook. Honestly the outlook is negative. Job well done.

topcallingtroll's picture

Now they tell us.

It all makes sense now.

Carlyle Groupie's picture

Global QE, equity index to da moon.

Marvin the Mindreader's picture

Il est grand temps.


eric89074's picture

GRPN -9% on a big up day. That dog needs to be shot.

mynhair's picture

Already priced in.

Except for the news.

Get ready to take a stand on gorilla paper - TBT or TMV.

fonzanoon's picture

Ha I took a stand at 35. Another one at 25. Then I took another one around 18. The Irony is it will take 600 billion in MBS purchases to "lower mortgage rates" to send it up.

mynhair's picture

Oooh, way early.  There is a strategy called 'trading'.

fonzanoon's picture

Thanks I bet you look good in your captain obvious costume. Shit happens. It's okay to laugh at it.

mynhair's picture

The long bond will hit 2.79%, for a week or 2.  Ignore calls for 2.5%.  Be patient, or nimble, your choice.

fonzanoon's picture

I have done neither, unfortunately

mynhair's picture

Been there, done that.  Back when TBT was 45.

Decay suks on these 2.  Toast in a month, just on decay.

max2205's picture

Buy the news!!!

lizzy36's picture

French bank assets as 4x french GDP.

This is going to end well.

Any decision on who is going to guarantee Dexia?