France’s top central banker, warned that his nation is in danger of losing its AAA credit rating by Standard & Poor’s and Moody’s, on Thursday struck out at ratings agencies, calling them “incomprehensible and irrational,” and also slammed Britain as being more deeply mired in financial woes than France.
Bank of France Governor Christian Noyer said in a Brittany newspaper that there is more politics than economics in the decisions of ratings companies, Bloomberg reported.
“A downgrade doesn’t strike me as justified based on economic fundamentals,” Noyer said. “Or if it is, they should start by downgrading the U.K., which has a bigger deficit, as much debt, more inflation, weaker growth and where bank lending is collapsing.”