Moody's strips France of AAA rating

Minister Moscovici, it's the previous government's fault

20 November, 12:13

Moody's strips France of AAA rating Moody's strips France of AAA rating

(ANSAmed) - Paris, November 20 - Moody's has stripped France of its AAA rating, downloading the country's debt one notch to AA1 with a negative outlook.

The ratings agency said the move was due to France's exposure to the eurozone crisis and the risk it will have to contribute to bailing out other countries.

It also cited internal problems that could affect the nation's long-term growth prospects. "These include the rigidities in labour and services markets and low levels of innovation, which continue to drive France's gradual but sustained loss of competitiveness and the gradual erosion of its export-oriented industrial base," Moody's said. Another agency, Standard & Poor's, downgraded France in January.

French Finance Minister Pierre Moscovici on Tuesday blamed the downgrade on the economic management of previous governments.

But he added that the downgrade would spur the French government to forge ahead with structural economic reforms and he stressed that the country's economy remained sound. "The rating change does not call into question the economic fundamentals of our country, the efforts undertaken by the government or our creditworthiness," Moscovici told a press conference.(ANSAmed).

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