European Commission Snubs Rumors of France Credit Downgrade

Finance | August 11, 2011, Thursday // 15:23|  views

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The European Commission has spoken out disparagingly Thrusday on incipient rumors that France might well be the next country with a credit rating downgrade.

French banks have been taking a sharp drop on stock exchanges due to fears that the country might be entangled in the debt crisis that has hit Greece, Portugal and Spain.

"'We have no comment to make on rumours circulating here and there about any downgrade for such-and-such country," Commission spokesman Olivier Bailly said Thursday.

Bailly also expressed confidence in the bailout plans for Greece, Ireland and Portugal, saying they are adequate for taming in the situation.

EU sources are also reported to be viewing with suspicion the sharp up-and-down movement of Societe Generale's shares, fearing there might be a case of "maniplation,"

At the same time, RFI reports Thursday of fresh drops of shares of French financial institutions over the day.

Societe Generale's shares have dropped anew with some 7%, while those of BNP Paribas with 6.8%.

The CAC 40 index of the Paris Stock Exchange is reported down by 0.52% at 2.992, with exchanges in London and Milano also on the red, while Frankfurt showing a slight rise.

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Tags: European Commission, debt crisis, greece, ireland, Portugal, Spain, France, Paris, stock exchange, London, Milano, Frankfurt, Olivier Bailly, BNP Paribas, societe generale


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