France needs to deliver promised budget cuts if it wants to avoid a further credit rating downgrade, Standard & Poor’s lead analyst for France told Reuters on Monday.
S&P, which stripped France of its coveted AAA rating in January 2012, could confirm the current AA rating if the public debt ratio looked set to stabilize, but analyst Marko Mrsnik says it remains to be seen if France can achieve that in 2015.
“We take on board expectations that in the 2014 budget there will be additional measures that will move the position towards smaller deficits,” Mrsnik said.
“We expect mild recession this year and slow recovery thereafter.”
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