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21.09.2015 08:26

Moody’s cuts France’s credit rating to "Aa2"

The ratings agency Moody's lowered France's credit rating to "Aa2" from "Aa1" on Friday. The outlook was upgraded to "stable" from "negative".

Moody's noted that the economic recovery in France is too slow.

"The current economic recovery in France has already proven to be significantly slower -- and Moody's believes that it will remain so -- compared with the recoveries observed over the past few decades, "the agency said.

"France faces material economic challenges, such as a high rate of structural unemployment, relatively weak corporate profit margins, and a loss of global export market share that have their roots in long-standing rigidities in its labour and product markets," Moody's added.

The French government said on Sunday that it has taken note of the Moody's decision and it was "firmly committed to continue and strengthen its policy of reforms to back French economy's potential growth and employment".

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