Bloomberg News

France Can’t Take More Shocks Without Risking Rating, Fitch Says

November 24, 2011

Nov. 23 (Bloomberg) -- France will have difficulty absorbing further large economic shocks without putting its top credit-rating at risk, Fitch said.

“Similar to the situation of other major ‘AAA’ sovereigns, the increase in government debt has largely exhausted the fiscal space to absorb further adverse shocks without undermining their ’AAA’ status,” Fitch said today in a report. “The principal concern with respect to France is that the intensification of the eurozone crisis will generate contingent liabilities that will be crystallised onto the sovereign balance sheet.”

To contact the reporter on this story: Mark Deen in Paris at markdeen@bloomberg.net

To contact the editor responsible for this story: Mark Deen at markdeen@bloomberg.net


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