Ratings agency Standard and Poor's is set to cut the credit ratings of several members of the 17-country euro zone, according to a senior euro zone government official.<br/> France's Finance Minister confirmed early reports that Standard and Poor's was cutting its debt rating on the country and said others will be downgraded as well.<br/> S&P warned in December that most of the euro zone had been place on watch for possible downgrades.<br/> That warning may have given equity markets the heads up, and so while the reaction to news the downgrades could come Friday is negative, there has not been a massive sell-off on Wall Street or across major European equity markets.<br/> French fund manager Jeremy Gaudichon:<br/> SOUNDBITE: JEREMY GAUDICHON, FUND MANAGER, KBL RICHELIEU (ENGLISH) SAYING:<br/> "It's not a good news for France of course. But the downgrade of the U.S. last summer gave the confirmation that we can live without the triple-A and even have a very low rate. So we don't have to over-estimate this news. Of course it's not good news, but it's not dramatic."<br/> But the money that is coming out of stocks is finding a place to go, says Tom Bradley, who oversees the institutional business for TD Ameritrade.<br/> SOUNDBITE: TOM BRADLEY, PRESIDENT, TD AMERITRADE INSTITUTIONAL (ENGLISH) SAYING:<br/> "So whenever you see downgrades in other areas - I think you always see a flight of money to what they deem to be the safest investment and that is typically U.S. treasuries. I think this will continue to drive capital towards safety and that's the United States."<br/> The downgrade means France, which has partnered with Germany in trying to end Europe's two-year debt crisis, will face higher borrowing costs.<br/> On the streets of Paris - there was dismay. But that famous French pride was still evident.<br/> SOUNDBITE: FRENCH MAN (FRENCH WITH ENGLISH TRANSLATION) SAYING:<br/> "What measure (will it impact us?) I think it's going to mean more austerity measures which will make things more difficult."<br/> SOUNDBITE: FRENCH WOMAN (FRENCH WITH ENGLISH TRANSLATION) SAYING:<br/> "It's the poor I'm worried about. This situation is going to traumatize them."<br/> SOUNDBITE: FRENCH MAN (FRENCH WITH ENGLISH TRANSLATION) SAYING:<br/> "Long live France, long live the Republic."<br/> France is Europe's second biggest economy, Germany, which is the biggest, is not expected to see a ratings change.<br/> Conway Gittens, Reuters
