French Leaders Deny Downgrade

April 27, 2012 by · Leave a Comment
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The Wall Street Journal reports that French government officials denied receiving any notice of a sovereign-rating downgrade.

One official speaking anonymously said, “There is absolutely nothing new.” The government has “no information in that regard from any credit rating agency whatsoever.”

Another said, “the rumor of the downgrade is unfounded,” adding that “There is no new information from any rating agency that would point in this direction.”

The comments came in reaction to investors speculating that France’s AAA rating may be downgraded. Citibank analysts said that they believed Moody’s was planning to put their rating “on review for a possible downgrade by the autumn.”

The downgrade speculation came just days before the first round of French national elections. Socialist candidate François Hollande, who is challenging President Nicolas Sarkozy, added to the confusion by claiming Moody’s planned to make the downgrade after the second round of elections.

Moody’s denied making any such plans.

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