Fitch Cuts France Credit Rating to AA+ from AAA

on July 12 2013 1:24 PM

Rating agency Fitch on Friday downgraded France's credit rating to AA+ from AAA, with a stable outlook.

Fitch said France's general government gross debt should peak higher at 96 percent of GDP in 2014 and decline only gradually, to 92 percent in 2017.  Fitch's previously projected GGGD to peak at 94 percent and had expected it to decline more quickly to below 90 percent by 2017.

"Risks to the agency's fiscal projections lie mainly to the downside, owing to the uncertain growth outlook and the ongoing euro zone crisis, even assuming no wavering in commitment to fiscal consolidation. A debt ratio that is higher for longer reduces the fiscal space to absorb further adverse shocks," the company said in a statement.

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