Natixis: Fitch may downgrade the outlook for France's rating to negative, and the spread between French and German bond yields will widen.

On October 11th, Jinshi Data reported that the strategist of Crédit Agricole’s Interest Rate research department said in a report that Fitch Ratings will review France on Friday night. It is unlikely to downgrade France’s AA- credit rating, but it may downgrade the rating outlook to negative, leading to an expansion of the yield spread between 10-year French and German government bonds. They said, ‘We expect Fitch Ratings to possibly change the rating outlook for France to negative. If Fitch Ratings gives a negative outlook, the yield spread between French and German government bonds may expand to about 82 basis points, and if downgraded, the spread may reach 90 basis points.’