New York, Nov 20 (IANS): Moody's Investors Service has cut France's government bond rating by one notch from Aaa to Aa1.
First, it said France's long-term economic growth outlook was negative, affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labour, goods and service markets, reported Xinhua.
Second, France's fiscal outlook uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities.
The action followed Moody's decision July 23 to change to negative the outlooks on the Aaa ratings of Germany, Luxembourg and the Netherlands.