MarketWatch.com is reporting that French finance minister Francois Baroin confirmed today that Standard & Poor’s downgraded the country’s triple-A credit rating by one notch. Baroin said that while he would have preferred that France keep the triple-A rating, the downgrade was not a catastrophe and that markets had anticipated the move by S&P.
European officials said that Slovakia, Italy and Austria are among other countries to be downgraded soon. It is rumored that Germany will keep its top rating for now.
Earlier today, the Euro fell to its weakest point in 16 months against the U.S. dollar, declining to $1.2665. The yield on Germany’s benchmark 10-year bond slipped 7 basis points to 1.759% and earlier touched a record low.
Standard & Poor’s hinted it may release its full report on this block of credit downgrades at some point today.