It looks like the European troubles of decreased credit agency ratings is simple not ending. Egan Jones Cuts France To BBB+ outlook to negative. This in turn will immediately result in burden costs on the French baking / finance sector. As a result, the prosperity of the binary option French and the Euro markets in large, will be severely tested.
The next Egan Who target is France, which was just cut from A- to BBB+. EURUSD tumbles, unlike what happens when Moody’s or S&P downgrades.
The possible deterioration in France’s credit metrics combined with the needed supported for France’s banks are likely to pressure the country. What is more interesting is that the new Socialist President of the country, Hollande will be under pressure to keep campaign promises which will ultimately hurt credit quality.
Egan-Jones Ratings Company Info:
- Also known as EJR, was founded in 1995.
- Actively rates the credit worthiness of approximately 2000+ high yield and high grade U.S. corporate debt issuers.
- On Dec. 21, 2007, the SEC granted Egan-Jones NRSRO status, thus including them in a group of what is currently nine recognized.