Standard & Poor's has downgraded France's credit rating, French TV reported Friday, while several other euro zone countries face the same fate later in the day, according to reports.

Germany and the Netherlands aren't among those facing a downgrade, a senior euro zone government source told Reuters. Another source confirmed "several" countries would be hit.

"Remain alert tonight when U.S. markets close," said another euro zone source.

US stocks slumped in reaction to the report that S&P had downgraded France. European shares also extended their decline.

In December, S&P placed the ratings of 15 euro zone countries on credit watch negative— including those of top-rated Germany and France, the region's two biggest economies—and said "systemic stresses" were building up as credit conditions tighten in the 17-nation bloc.

Since then, the European Central Bank has flooded the banking system with cheap three-year money to avert a credit crunch. At the time, the U.S.-based ratings agency said it could also downgrade the euro zone's current bailout fund, the EFSF.

"The consequence (if France is downgraded) is that the EFSF cannot keep its triple-A rating," said Commerzbank chief economist Joerg Kraemer.

"That may irritate markets in the short term but wouldn't be a big problem in a world where the U.S. and Japan also don't have a triple-A rating anymore. Triple-A is a dying species," he said.

http://www.cnbc.com/id/45986372

The current monetary system based on debt
is failing and will continue to fail...miserably.

It was never designed to serve us...
therefore it can not and will not last.
It inevitably must collapse.