Life after AAA

Should France be worried now that itstriple AAA rating granted by Standard &Poor's (S&P) in 1975 has been cut onFriday 13 January? French Treasurysold varieties of bonds all over theweek with out difficulty, with even loweryields than before S&P's decision to cutFrench rating (1.89% average weightedyield for the 5-year OAT vs. 2.82% lastNovember). Let's remember thatFrench debt was only cut by one notch.At AA+, French bonds are still regardedas high quality and have the samerating as the US government bonds. Inaddition, France was not the onlycountry to be downgraded. This wasalso the case for nine of the seventeeneuro zone countries which ratings werecut on the same day. Nonetheless S&Phas put all countri

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