23 Mar 2011

French Polynesia president objects to ratings drop

5:52 pm on 23 March 2011

The French Polynesian president, Gaston Tong Sang, has expressed surprise at the territory's downgrading by the ratings agency Standard and Poor's, saying the verdict is unjust.

This comes after the rating was dropped from BBB- to BB+.

The agency noted the political instability and the dispute over the validity of the 2011 budget which is to be determined by France's highest administrative court.

Mr Tong Sang says the agency has failed to analyse closely what his government has managed to achieve in the course of last year.

He has told Tahitipresse that he is about to fly to Paris and admits he will have difficulty negotiating favourable lending terms with bankers against the background of the latest assessment.