The Economy Is Sluggish And Debt Is Heavy &Nbsp; Britain And France "Top Credit" Is At Stake.

Following the sovereignty of the United States credit After the rating was downgraded, France and Britain were most likely to lose the top AAA ratings in European countries, because the economies of both countries were weak and the debt burden was heavy.

At present, the international credit rating agencies have a stable view of the credit outlook of both Britain and France, so the two countries' credit rating should not be suddenly cut down at the moment. As the British government is implementing debt reduction measures, interest rates on British bonds are at a historically low level. However, following the decline in the US credit rating on Friday, interest rates for French bonds also rose. Banks and stock brokers therefore warned that rating agencies may now turn their focus to Europe's top credit nations.

Financial Services Company BBH reminded its customers, "France is hovering at the edge of AA+/Aa1/AA+ (lower tier than AAA). With the spread of pressure, the risk of losing AAA rating is also improving. One of the most likely reasons for the French credit outlook to fall into the negative sector is that Congress does not support the government's amendment to the Constitution and set a ceiling on the deficit; the French left wing member has vowed to vote in the vote. Vote against 。 Britain, which does not belong to the eurozone, looks better. She has her own currency, if necessary, it can lower the value of her currency and set interest rates on her own. However, because of its weak economic foundation, credit rating is also likely to be reviewed.

Rodgers, co-founder of Quantum Fund, told Reuters: "many countries in Europe should be downgraded as well as the United States."

Among the euro area countries, only Austria, Finland, France, Germany, Luxemburg and Holland have AAA top level. Grade Among them, the French government bonds have the highest interest rates. France's deficit, debt and basic deficit are among the highest in those countries, and the only countries in the euro zone countries with the highest ratings are current-account deficits. Britain's deficit, basic deficit and debt to gross domestic product (GDP) ratio are all higher than France's. There is also a current account deficit and weak economic growth.