France's AAA rating 'is warranted'

11 August 2011

France's AAA rating has been affirmed, with numerous agencies agreeing that the grading is seen as steady.

Standard & Poor's (S&P), Moody's Investors Service and Fitch Ratings decided the country should keep the top credit grade as relative yields on the nation's debt increase, Bloomberg reports.

Moritz Kramer, managing director of European sovereign ratings at S&P - which has been in operation for more than 150 years and currently has offices in 23 countries around the world - described the status as "warranted", while Moody's spokesman Francesco Meucci agreed the AAA grade was "stable".

Brian Bertsch, a representative of Fitch, noted the standing was balanced as per the organisation's statement in May.

A jump of 87 basis points has been witnessed regarding the additional yield investors require to purchase ten-year French debt as opposed to German bonds, despite both holding AAA grades from the three companies - an amount almost three times the 33 average recorded in 2010.

By Tony Aynsley

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