France’s Credit Rating Cut One Step to BBB+ by Egan-Jones

France’s credit rating was cut one step to BBB+ from by Egan-Jones Ratings Co., citing “deterioration” in the nation’s credit metrics and the need for support of the country’s banks.

Yields on French government bonds due in 10 years have fallen 47 basis points, or 0.47 percentage point, since the end of last year. Francois Hollande, who defeated French President Nicolas Sarkozy last month to become the first Socialist in 17 years to control Europe’s second-biggest economy, pledged to push for less austerity and more growth in the region.

“As the crisis evolves, we expect that France will be pressured,” the Haverford, Pennsylvania-based company said today in a statement. “Hollande will be under pressure to keep campaign promises, which will ultimately hurt credit quality.”

To contact the reporter on this story: John Detrixhe in New York at jdetrixhe1@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net