Moody's, the rating agency, threatened France with a credit rating review to a negative outlook from the current stable rating outlook on the basis that providing funds to bailout banks and nations in the euro area could stretch its budget in the coming three months, where the agency sees that France will have to support other members in the zone in addition to its banking sector.
The French progress on crucial fiscal and economic reforms along with potential adverse developments in financial markets will also be reviewed as Moody's said.
Moody's said in a statement the deterioration in debt metrics and the potential for further contingent liabilities to emerge are exerting pressure on the stable outlook of the government's Aaa debt rating.
Moody's also said that continued commitment to implementing the necessary economic and fiscal reform measures, is required for France to save its Aaa rating.
Financing high levels of debt rests on investors' confidence in the government's ability and in its willingness to tackle unforeseen challenges, Moody's said in the statement.