More downgrades likely unless French make serious reforms

French President Francois Hollande (photo:dpa)
French President Francois Hollande (photo:dpa)

Rating agency Moody's removed France from its top-ranking triple A rating. The downgrade came only days after President Francois Hollande had made a genuine policy 'U-turn' to restore the country's competitiveness. But the downgrades could accelerate if France cannot reform itself seriously and its financing abilities could become more problematic.

RATING agency Moody’s has downgraded the French sovereign signature from Aaa to Aa1, keeping its ‘negative outlook’ on France.

The agency based its decision on November 19, 2012, on ‘structural challenges’ including the loss of competitiveness, rigid labour market and fiscal imbalances.


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