Moody’s downgrades France 1 notch on weak growth
November 19, 2012 7:36PM
Updated: November 19, 2012 7:36PM
Moody’s Investors Service has downgraded France’s government bond rating, citing the country’s weak economic growth outlook and its exposure to Europe’s economic crisis.
The rating agency lowered France’s rating one notch on Monday from Aaa — its top rating — to Aa1. The outlook for the rating remains negative, meaning it could face future downgrades.
Moody’s says France’s long-term growth outlook is slowing and that it is becoming increasingly difficult to predict how resilient it will be to future euro-area shocks. But the agency noted that the country’s rating and the stability of its banks still remain extremely high compared with many other European countries.