S&P Seen as Unlikely to Change France’s Rating, Outlook on Friday

0649 GMT – France is expected to retain both its ‘AA’ rating and negative outlook when S&P Global Ratings reviews the country’s rating on Friday, Citi’s rates strategists write in a note. “On balance, our forecasts don’t suggest any change to rating/outlook in the near-term,” they say. This should mean limited market impact from Friday’s decision, they add. S&P lowered France’s outlook to negative from stable in December, reflecting the ratings firm’s view of rising risks to France’s public finances and the resulting reduction in fiscal space. The French 10-year OAT yield is trading 2.4 basis points higher at 2.863%, while the 10-year Bund yield is also up 2.4bps at 2.294%, according to Tradeweb. (emese.bartha@wsj.com)