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.”
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