JPM's Gartside: UK and France next in line for downgrade

J.P. Morgan's Nick Gartside has warned France and the UK are in danger of joining the US in losing their prestigious AAA-credit ratings.

The head of fixed income at the group said both countries need to address their debt to GDP ratios, which are both well above the 60% average for AAA-issuers, to avert the threat of a downgrade. His comments mirror M&G's head of retail fixed interest Jim Leaviss, who has previously said France and the UK's credit ratings will come under pressure over the next couple of years. "France could be downgraded as its debt to GDP is forecast to rise close to 90% over the next two years," said Gartside. "The UK's debt to GDP is set to peak at around 80% but the challenge the government face...