In a sign of things to come, China’s Dagong Global Credit Rating Co. Ltd. agency has downgraded France’s sovereign credit rating to A from A+. In a report last week Dagong said the debt repayment climate in France remains stable, but the economic outlook is clouded by the failure of the Paris government to pursue structural reforms. “The fiscal deficit and the debt burden ratio have climbed up further, which have weakened the government’s debt repayment capacity.” Dagong was founded about two decades ago and remains far less well known than western credit rating agencies, though it has begun to attract more attention in recent years.
