France Loses AAA Rating on Weak Growth

Moody's downgrades the government's bond rating
By Newser Editors and Wire Services
Posted Nov 19, 2012 5:58 PM CST
France Loses AAA Rating on Weak Growth
French President Francois Hollande leaves after laying a wreath during the ceremony marking Armistice Day in Paris, Sunday Nov. 11, 2012.   (AP Photo/Gonzalo Fuentes, Pool)

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 today from triple-A—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. (More Moody's stories.)

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