Low rating: Moody’s keeps France on negative

Moody’s says France’s still manageable debt burden justified keeping the rating where it is

WASHINGTON: Moody’s maintained its negative rating on France on Friday but – despite earlier reports – did not deal the struggling economy a downgrade. Moody’s kept its Aa1 overall rating for the country’s debt, but warned of significant risks in the government’s efforts at restructuring to deal with its heavy fiscal challenges. Moody’s said France’s still manageable debt burden justified keeping the rating where it is, even as the country struggles. “Despite negative credit pressures, the country retains significant credit strengths, including the size and wealth of the economy, as well as its affordable debt burden despite a continuous, gradual erosion of its economic and fiscal strength.”

Published in The Express Tribune, September 21^st, 2014.

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