S&P strips France of Triple-A credit rating

France’s rating has been downgraded by S&P, say French TV channels, citing government sources. The rumors of a possible downgrade have been circulating since the end of the year. There have also been reports that the agency could downgrade other countries. The move could weaken the country’s ability to borrow. France needs to find another 400 billion euro (US$506 billion) to stay afloat, covering its repayments of existing debt, interest owed and new borrowing. An extra 1% would cost French taxpayers 4 billion euro a year. The French Channels say the eurozone’s leading economy is not likely to be downgraded, even though it was one of the 15 eurozone countries put on a credit watch negative list by S&P in December. The agency said then it was concerned by “systemic stresses” that the countries went through as credit conditions tightened. Talk about an EU countries downgrade has caused nervousness through European and international markets, often outweighing attempts by EU leaders to put a positive spin on the economy.