Fitch lowers long-term credit ratings for France

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Associated Press

Posted on July 12, 2013 at 2:00 PM

Updated Friday, Jul 12 at 3:02 PM

Fitch Ratings has lowered long-term credit ratings for France by a notch, reflecting the country's elevated government debt and weak economy.

France's government unveiled a modest stimulus plan this week focusing on new technology and ecology, in an attempt to boost Europe's No. 2 economy which is back in recession.

Fitch said it cut France's long-term foreign and local currency issuer default ratings to "AA+" from "AAA." It said the outlook was stable.

At the same time, Fitch affirmed France's short-term foreign currency issuer default rating at F1 and its country ceiling at AAA.

The rating agency says it estimates France's government debt to peak at 96 percent of gross domestic product next year and to decline only gradually over the long term.

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