Ratings agency Standard and Poor's cut France's sovereign credit rating to AA
from AA plus on Friday, citing lack of progress in government reforms of the
country's economy. The agency revised the country's sovereign credit outlook up to stable from
negative, however.
In a statement, S&P said that it had lowered France's rating because it
believed the government's reforms to taxation, as well as to product, services,
and labor markets, "will not substantially raise France's medium-term growth
prospects, and that ongoing high unemployment is weakening support for further
significant fiscal and structural policy measures."
"Furthermore, we believe lower economic growth is constraining the
government's ability to consolidate public finances," the agency said.
French President Francois Hollande told reporters in Paris that his
government would carry out all savings measures possible without endangering the
country's welfare policy, Reuters reported. He added that only the economic policies pursued by his government could
underpin France's credibility.
