Citing "continuing weakness in the medium-term growth outlook," Moody's has downgraded France:
- *FRANCE CUT TO Aa2 FROM Aa1 BY MOODY'S, OUTLOOK TO STABLE
Apearing to blame The EU's "institutional and political constraints," Moody's expects French growth to be at most 1.5% and does not expect the debt burden to be materially reduced this decade.
1. The continuing weakness in France's medium-term growth outlook, which Moody's expects will extend through the remainder of this decade; and2. The challenges that low growth, coupled with institutional and political constraints, poses for the material reduction in the government's high debt burden over the remainder of this decade.