The decision by Moody’s to downgrade the French government’s bond rating was anticipated by analysts in the Euromoney Country Risk Survey.
France’s overall ECR score of 73.7 is much weaker than other core eurozone members. Its score is 6 points lower than Austria and 8 points behind triple-A rated Germany. France has languished in the second tier of ECR’s five-tier system since September 2010, after it fell 6 places between March and September that year to 18th position.
The sovereign’s overall risk assessment has continued on a downward trend this year, with its ECR score falling by 2.1 points since March, after a sharp fall of 5.6 points over the second half of 2011.