France to Lose it’s AAA Rated Credit Soon

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France to Lose it’s AAA Rated Credit Soon How You Can Improve Your Credit Score Here ph

France’s top credit rating is soon to be going lower. Investors who finance France’s debt are not waiting for Standard & Poor’s or Moody’s Investors Service to lower France’s credit rating from AAA. The Euro Debt Crisis that started a couple years ago in Greece, then spread like the plague to Ireland, Portugal, Italy and Spain is landing on the shores of France like the invasion of Normandy Beach on D-Day. France has the biggest debt burden of the top-rated euro nations, at 85% of gross domestic product. Also, its financial institutions have the greatest debt holdings in Greece, Ireland, Portugal, Italy and Spain. As of June 2011, France’s institutions held 681 billion euros or $921 billion, according to reports from the Bank for International Settlements in Basel. Their institutions might even be insolvent if they had to mark to market these loans. Though Moody’s and S&P have a stable outlook on French credit, as of today, both have signaled that France’s credit rating is at risk. The idea that France can finance the burdens of its neighbors is the main threat to its credit rating, according to Moody’s. In a Ripley’s Believe it or Not moment, France may actually have to rely on Germany to financially support a rescue of France.

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