Standard and Poors (S&P), a representative bond rating company, decided to cut Frances credit rating to double A.
The Wall Street Journal: S&P Cuts France's Credit Rating by One Notch to Double-A
S&P have shouldered for evaluation of the credibility of bonds. The world economy is often strongly influenced by the statement of S&P. In general, the fact that S&P cut the rating of a nation is deemed as a severe crisis of the subject.
However, the current situation is unclear. S&P is criticizing the policy of President Hollande severely. Actually, it is no doubt that S&P dislike Mr. Hollande, as he stands by the side of the socialists, compared to past president Nicolas Sarkozy.
Mr. Paul Krugman, a world famous economist, says that it is only an ideological rating. He states that no one knows the absolute way to recover the economy. I agree with him.
The New York Times: The Conscience of a Liberal - Ideological Ratings
On the other hand, Krugman also has his own ideology. I think he likes big government more than little government. His column on the New York Times has a strong influence on the economy.
Making standard is one of most easy and decisive method to take control of a region. The situation is similar in academism. In psychiatry, DSM made by APA has ultimate power.
What should France do? Hollande seems to be calm. I think he need not be concerned about the rating by S&P. It is the most beneficial way for France to show some other social value other than economic growth. If so, capitalism represented by S&P will not able to interfere them. Of course it is extremely difficult, I expect Hollande to be another type of leader.