France’s credit rating

What it is. The ratings that judge France’s ability to repay its debt. AAA is the best rating.

Why it matters. A downgrade makes borrowing more expensive for France. Because review dates are known in advance, markets await each one nervously. Two steps really matter. Below A-, banks get less money from the European Central Bank when they pledge French debt as collateral (ECB rule). Below BBB-, French debt would drop out of the “investment grade” category: many funds, which are not allowed to hold it, would have to sell, and the ECB would no longer accept it.

How to read the chart. One line per agency: the higher it is, the better the rating. We keep the lowest of the three. Moody’s writes its ratings differently: Aa3 equals AA-.

Who measures it, and when. S&P, Moody’s and Fitch. EU rules require them to publish their review dates for the coming year every late December, always on a Friday, and to announce a rating only after markets close (credit rating agencies regulation, Article 8a); they may depart from this calendar only with a justification. Ratings listed by the Agence France Trésor. Collected every morning, a change is recorded only if two independent sources confirm it (Wikipedia, countryeconomy.com).