|Moody's Blasts France with Debt Downgrade|
|by Tom McGregor||Mon, Nov 19, 2012, 08:14 PM|
On Monday, Moody's Investors Service downgraded France, slashing its AAA credit rating amidst concerns over its prospects of economic growth and its exposure to the EU financial crisis.
According to the Houston Chronicle, "Moody's lowered France's rating one notch to Aa1. It kept the rating's outlook at negative, meaning it could face future downgrades. The ratings agency said that it is becoming increasingly difficult to predict how resilient France will be to future euro-area shocks."
Yet the agency claimed the nation’s rating remains high compared with many other European countries.
As reported by the Houston Chronicle, "the downgrade will 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 Aaplus in January, citing the deepening political, financial and monetary problems with the eurozone.”
French Finance Minister Pierre Moscovici blamed the downgrade on the policies of the previous governments and of course blamed former US President George W. Bush.
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