Moody's, the rating agency, said that rising yields on French bonds along with the global slowdown in growth in addition to the faltering recovery could negatively affect the French debt rating of AAA.

Alexander Kockerbeck, the Senior Credit Officer, said in Moody's Weekly Credit Outlook that Elevated borrowing costs persisting for an extended period would amplify the fiscal challenges the French government faces amid a deteriorating growth outlook, with negative credit implications.