Posted by Fullcouch on January 13, 2012, 5:20pm
AP – France’s finance ministry says Standard & Poor’s has cut the country’s credit rating by one notch to AA.
France’s loss of its AAA-rating deals a heavy blow to the Eurozone’s ability to fight off its debt crisis. The country is the second-largest contributor to the currency union’s bailout fund.
S&P in December put 15 eurozone countries on creditwatch and other downgrades were expected later Friday.
The cut in France’s creditworthiness could also hurt President Nicolas Sarkozy’s re-election chances.
Looks like the next two dominoes will be Germany and Holland.