Moody's affirms France's AAA rating, but sees pressure
Moody`s rating agency said...
Moody`s rating agency said on Monday it keeps the triple-A rating of France unchanged, but the country`s fiscal position and potential bailout of the banks can affect its stable outlook, according to the Xinhua.
The agency made this assessment just three days after another rating agency Standard & Poor`s downgraded the French credit ratings by one notch from AAA to AA+ last Friday. Moody`s said French banks may need bailout due to liability burden, and the country`s fiscal situation may also pose risk.
"The AAA rating of the French government may come under pressure if general government debt in relation to nominal GDP continues to accumulate without signs of stabilizing at a highly affordable level," Moody`s said
The rating agency said it would update its position on the French sovereign rating later this quarter. France`s fiscal deficit is projected to fall to 4.8 percent of GDP and its economy will expand 0.6 percent this year.