AIRLINK 188.48 Decreased By ▼ -1.04 (-0.55%)
BOP 12.70 Decreased By ▼ -0.07 (-0.55%)
CNERGY 7.25 Increased By ▲ 0.09 (1.26%)
FCCL 42.47 Increased By ▲ 0.35 (0.83%)
FFL 15.45 Decreased By ▼ -0.09 (-0.58%)
FLYNG 25.23 Increased By ▲ 0.04 (0.16%)
HUBC 133.46 Increased By ▲ 3.37 (2.59%)
HUMNL 14.40 Increased By ▲ 0.08 (0.56%)
KEL 4.79 Increased By ▲ 0.12 (2.57%)
KOSM 6.34 Decreased By ▼ -0.17 (-2.61%)
MLCF 49.04 Increased By ▲ 2.10 (4.47%)
OGDC 210.37 Increased By ▲ 7.62 (3.76%)
PACE 6.43 Decreased By ▼ -0.01 (-0.16%)
PAEL 42.49 Increased By ▲ 1.35 (3.28%)
PIAHCLA 16.89 Decreased By ▼ -0.14 (-0.82%)
PIBTL 8.92 Increased By ▲ 0.21 (2.41%)
POWER 10.73 Increased By ▲ 0.03 (0.28%)
PPL 178.06 Increased By ▲ 5.85 (3.4%)
PRL 35.24 Increased By ▲ 0.47 (1.35%)
PTC 24.81 Decreased By ▼ -0.04 (-0.16%)
SEARL 96.83 Increased By ▲ 0.11 (0.11%)
SILK 1.11 Increased By ▲ 0.01 (0.91%)
SSGC 31.89 Increased By ▲ 1.31 (4.28%)
SYM 17.72 Decreased By ▼ -0.17 (-0.95%)
TELE 8.31 Decreased By ▼ -0.09 (-1.07%)
TPLP 11.86 Decreased By ▼ -0.03 (-0.25%)
TRG 63.27 Decreased By ▼ -0.08 (-0.13%)
WAVESAPP 11.64 Increased By ▲ 0.01 (0.09%)
WTL 1.49 Decreased By ▼ -0.01 (-0.67%)
YOUW 3.94 Decreased By ▼ -0.11 (-2.72%)
AIRLINK 188.48 Decreased By ▼ -1.04 (-0.55%)
BOP 12.70 Decreased By ▼ -0.07 (-0.55%)
CNERGY 7.25 Increased By ▲ 0.09 (1.26%)
FCCL 42.47 Increased By ▲ 0.35 (0.83%)
FFL 15.45 Decreased By ▼ -0.09 (-0.58%)
FLYNG 25.23 Increased By ▲ 0.04 (0.16%)
HUBC 133.46 Increased By ▲ 3.37 (2.59%)
HUMNL 14.40 Increased By ▲ 0.08 (0.56%)
KEL 4.79 Increased By ▲ 0.12 (2.57%)
KOSM 6.34 Decreased By ▼ -0.17 (-2.61%)
MLCF 49.04 Increased By ▲ 2.10 (4.47%)
OGDC 210.37 Increased By ▲ 7.62 (3.76%)
PACE 6.43 Decreased By ▼ -0.01 (-0.16%)
PAEL 42.49 Increased By ▲ 1.35 (3.28%)
PIAHCLA 16.89 Decreased By ▼ -0.14 (-0.82%)
PIBTL 8.92 Increased By ▲ 0.21 (2.41%)
POWER 10.73 Increased By ▲ 0.03 (0.28%)
PPL 178.06 Increased By ▲ 5.85 (3.4%)
PRL 35.24 Increased By ▲ 0.47 (1.35%)
PTC 24.81 Decreased By ▼ -0.04 (-0.16%)
SEARL 96.83 Increased By ▲ 0.11 (0.11%)
SILK 1.11 Increased By ▲ 0.01 (0.91%)
SSGC 31.89 Increased By ▲ 1.31 (4.28%)
SYM 17.72 Decreased By ▼ -0.17 (-0.95%)
TELE 8.31 Decreased By ▼ -0.09 (-1.07%)
TPLP 11.86 Decreased By ▼ -0.03 (-0.25%)
TRG 63.27 Decreased By ▼ -0.08 (-0.13%)
WAVESAPP 11.64 Increased By ▲ 0.01 (0.09%)
WTL 1.49 Decreased By ▼ -0.01 (-0.67%)
YOUW 3.94 Decreased By ▼ -0.11 (-2.72%)
BR100 12,023 Increased By 158.1 (1.33%)
BR30 36,130 Increased By 809.4 (2.29%)
KSE100 114,330 Increased By 1529.2 (1.36%)
KSE30 35,612 Increased By 576.2 (1.64%)

France's top AAA credit rating is likely to be downgraded and Germany could easily follow as the costs of bailing out weaker eurozone economies push up their own debt piles, says credit hedge fund firm Cairn Capital's chief investment strategist.

London-based Cairn, which has $24.5 billion in assets under management and advice across its business, said either future contributions to the European Financial Stability Facility (EFSF) rescue fund, or France's own economic troubles, could see it lose its coveted rating.
"There are very deep economic flaws in the whole euro mechanism," said Graham Neilson, citing high debt levels, weak growth, divergence between member states and the European Central Bank's focus on inflation expectations. "France is likely to be downgraded either on its own metrics but more likely as a result of potentially higher EFSF costs. The bigger the EFSF, the more France is liable (and) the worse France's credit rating the more it could be liable."
Some commentators have suggested the EFSF, which will be able to give loans to countries, buy sovereign bonds and lend governments money to recapitalise banks, needs to be raised to as much as one trillion euros from 440 billion euros currently.

Copyright Reuters, 2011

Comments

Comments are closed.