France downgraded from AAA to Aa1 by Moody`s

Moody's Investors Service on Mondaydowngraded France, stripping it of its prized AAA credit rating due to concernsover its prospects for economic growth and its exposure to Europe's financial crisis.
Moody's lowered France's rating one notch to Aa1. It kept the rating's outlook at negative, meaning it could face future downgrades.
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The ratings agency said that it is becoming increasingly difficult to predict how resilient France will be to future euro-area shocks.
But the agency noted that the country's rating remains high compared with many other European countries. It cited for this France's diversified economy and "a strong commitment to structural reforms and fiscal consolidation."
The downgrade will likely heighten fears that Europe's debt crisis is spreading from the so-called peripheral nations like Greece, Portugal and Ireland to the core of the euro region. Standard & Poor's, a rival rating agency, lowered its rating on France's debt one notch from AAA to AA+ in January, citing the deepening political, financialand monetary problems within the eurozone.
Pierre Moscovici, the French finance minister, blamed the downgrade on the policies of previous governments thathad failed to restore the competitiveness of the nation's economy.
"French debt still remains among the most liquid and safest of the eurozone," said Moscovici, a member of the ruling Socialist government."The French economy is large and diversified and the government has shown proof of its serious plan to implement structural reformsand restore public finances."

SRI Socially responsible investment.

Investments that comply with any social, environmental and ethical principles which may be adopted by the trustees.
Occupational pension schemes are required to disclose the extent to which, if at all, social, environmentalor ethical considerations are taken into account in the selection, retention and realisation of investments.

sponsoring employer

The employer with responsibility for meeting the liabilities of a DB pensionscheme.
In DC schemes, typically the employer who sets up and/or assumes responsibility for the running of the scheme, and meets the expenses.

SORP Statement of recommended practice.

Guidance on best accountingpractice for the presentation of financial information prepared by the particular sector to which the SORP relates (in this case, occupational pensions).

statutory funding objective

The requirement for an ongoing scheme to have sufficient and appropriate assets to cover its technical provisions, or a recovery plan to reach that position.

statutory independent trustee

An independent trustee, appointed at the discretion of the regulator to a scheme where the employer has become insolvent. The independent trustee must be chosen from the regulator's register of approved independent trustees.

statutory independent trustee

An independent trustee, appointed at the discretion of the regulator to a scheme where the employer has become insolvent. The independent trustee must be chosen from the regulator's register of approved independent trustees.

statutory objectives

The three specific objectives set for The Pensions Regulator in the Pensions Act 2004:
*. to protect the benefits of members of work-based pension schemes
*. to promote good administration of work-based pension schemes
*. to reduce the risk of situations arising that may lead to claims for compensation from the Pension Protection Fund

stock lending

A temporary transfer of securities (for example, equities) by an owner (typically a pension scheme) to a borrower (usually a fund manager). The borrower undertakes to return those securities to the lender at pre-agreed time.

strategic investment

Carried out by trustees as part of the preparation of their SIP, it is the practice of making long term decisions on asset allocation so that they are able to pay pension benefits as they fall due.