

France Loses AAA Rating from S&P - edwardy20
http://www.bloomberg.com/news/2012-01-13/france-loses-aaa-as-greek-talks-break-down-in-crisis-blow.html

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joeybaker
It's going to be funny when S&P raises all of these countries back to AAA in
2-3 years.

…

Alternatively, it's going to be funny when S&P has no more AAA rated bonds and
AA becomes the new norm (since the A-C scale apparently wasn't enough to begin
with.)

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schallis
Remember that these are the guys that rated 2008's toxic bonds AAA. Does what
they say really matter?

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idont
Yes and for many reasons: 1.- Some companies or pension funds, etc. only buy
AAA products. Without that precious rating you lose potential buyer. 2.- These
countries live on debts. Bad rating => higher costs => taxes increases or
spending cuts (which is an easy programm these days in Europe ;) ). Note:
France is not the US, investors have not the same trust into them. 3.- GDP,
jobless rate, export balance, etc: French are out and German are in which will
have hugh impacts on the solidarity fund, political credibility, etc. (And
remember French are still sensitive about having a Germany not dominating the
Europe.)

The worst part is that Germany has kept its AAA. This means that the downgrade
does not punish a "European problem" but a "Country problem", and this will
have hugh impacts during this election year and for solving the issues in
European.

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stevedekorte
Don't worry, Krugman says debt doesn't matter.

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EiZei
If you are still in one of those AAA-rated countries it would seem so since
Germany's getting negative interest for theirs apparently.

