French CDS rises on market jitters over ratings

The cost of protecting government debt against default in France as well as other peripheral euro zone countries rose on Tuesday as investors remained anxious about sovereign ratings.

Five-year credit default swaps (CDS) on French government debt rose to 74.6 basis points from 68.6 bps at the New York close on Friday, according to CDS monitor CMA DataVision. New York markets were closed on Monday.

It means the cost rises to 74,600 euros to protect 10 million euros-worth of French government bonds.

The French CDS was nearing a record high 80.6 bps set on May 6.

France's Budget Minister Francois Baroin said on Sunday that keeping the country's triple-A rating was "a stretch". [ID:nLDE64T0B8]

Peripheral sovereign CDS also rose, including those of Spain and Greece. Late on Friday, Fitch Ratings downgraded Spain to double-A plus.