Fitch downgrades France’s credit rating to 'AA'
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Fitch Ratings has lowered France’s credit rating by one notch to “AA” – two steps below the top triple-A rating – over concerns about the country’s budget.
France’s government warned in September that its deficit for the year may actually go up, rather than down – as previously promised. The European Union has rules on the size of deficits and debts that members must meet in an effort to avoid another financial crisis.
Fitch warned in October of a possible downgrade, citing France’s repeated inability to stick to its own targets, which are much less than those imposed by the EU.
"The 2015 budget involves a significant slippage against prior budget deficit targets," it said.
The rating agency said Friday that the country’s planning has hurt its credibility and its ability to absorb potential financial shocks.
Fitch downgraded France’s long-term foreign and local currency issuer default ratings one notch to “AA” from “AA+”, keeping it in investment-grade territory. The outlook is stable.
Fitch had already downgraded France from the top “AAA” rating almost a year ago exactly.
(FRANCE 24 with AP, AFP)
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