Standard and Poor's cuts France credit rating to AA

PanARMENIAN.Net - Standard and Poor's (S&P) has cut France's credit rating to AA from AA+, according to BBC News.

The moves comes almost two years after the country lost its top-rated AAA status.

S&P said it downgraded France because high unemployment in the country was making it hard for the government to make important reforms which would boost growth.

The French government responded by saying that its debt rating was one of the safest in the eurozone. The country's Finance Minister, Pierre Moscovici, said S&P had made "inaccurate criticisms" of his country.

He said in a statement: "During the last 18 months the government has implemented major reforms aimed at improving the French economic situation, restoring its public finances, and its competitiveness."

In theory, a lower credit rating makes borrowing more expensive.