FRANCE

Standard & Poor’s ratings agency has downgraded France’s credit rating, French television channels reported on Friday, citing a government source. The channels did not provide further details. S&P warned in December that it could downgrade the credit ratings of several euro zone nations if European leaders failed to find a lasting solution to the debt crisis at a meeting of EU leaders that month. Several euro zone countries including France face an “imminent” downgrade by ratings agency S&P, Reuters and Dow Jones news agencies reported, sending the euro to a session low against the dollar and European stocks down. U.S. stocks also tumbled. The reports said Germany and the Netherlands were not among the countries facing a downgrade later on Friday, but gave no further details. According to Dow Jones sources, France was among the countries set to be downgraded. “Remain alert tonight when U.S. markets close,” Reuters cited a source as saying. S&P warned in December that it could downgrade the credit ratings of several euro zone nations if European leaders failed to find a lasting solution to the debt crisis at a meeting of EU leaders that month. A spokesperson for S&P in Paris declined to comment on the reports. A French finance ministry spokesperson was not immediately available for comment. John Wraith, Fixed Income Strategist at Bank of America Merrill Lynch told CNBC the confirmation of a mass downgrade would be another serious step in the crisis and would lead to a serious worsening of sentiment. “Clearly these won’t come out of a clear blue sky. These countries have all been on negative credit watch for the last four weeks and many observers — ourselves included — did expect that process to end with ratings action,” he said. “To a large degree it’s widely anticipated. However, we think the reality of it is going to have a knock-on, ongoing impact on these markets.” –