French Bonds Face Risk of Forced Sales If Credit Score Cut

Looming credit-rating decisions risk re-injecting more uncertainty into France’s bond market after a respite this week.

The latest crisis has laid bare the nation’s precarious fiscal and political situation, which is likely to factor into crunch decisions from Moody’s Ratings and S&P Global Ratings over the next six weeks. If either downgrade, bond funds with ultra-strict investment criteria are likely to be compelled to offload their French sovereign debt holdings.