By Tom Nicolson: Subscribe to Tom's RSS feed
January 13, 2012 11:10 AM EST
Financial rating agency Standard & Poor's is poised to downgrade the French credit rating in an expectation that has sent shockwaves through the eurozone and global markets.
France, along with the other eurozone countries, was put on to "negative credit watch" towards the end of 2011 but the official announcement of the downgrade from AAA to AA is likely to put huge pressure on President Nicolas Sarkozy just months ahead of the general election.
The downgrade will mean France's sovereign bond yield will increase, making it essentially more expensive for Paris to borrow money. That will ultimately weaken the French economy.
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