Fitch says the election of the Socialist party candidate, Francois Hollande, as President of the French Republic does not have implications for France’s ‘AAA’ rating, currently on Negative Outlook.
Nonetheless, his electoral victory marks an important change in the leadership of France and Europe.
The new President faces the same challenges as his predecessor: strengthening fiscal credibility; boosting France’s medium-term growth potential; and dealing with the eurozone crisis.
Fitch affirmed France’s ‘AAA’ sovereign rating on 16 December 2011 and revised the rating Outlook to Negative. In the absence of material shocks, the Outlook is unlikely to be resolved until 2013. Fitch’s review of France’s sovereign credit fundamentals will incorporate developments in the eurozone crisis and the economic and public finance risks it poses to France, as well as its latest assessment of the economic outlook and prospects for reducing public debt over the medium term.
For more see France – The Challenges Ahead