Moody's issue further warning to France on credit rating cut :Angel Broking,

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Moody's issue further warning to France on credit rating cut
Moody’s cautioned France over a possible downgrade of its credit rating.
Moody’s had already warned in October that the country's creditworthiness
and the stable outlook on its triple-A rating were under pressure from high
debts and deficits, as well as the possibility that the country may have to grant
further support to its banks or other euro zone countries. Investors put France
under acute pressure last week by pushing the country's borrowing costs
sharply higher compared to German bonds.
France is being particularly watched on its commitments to cut high deficits as
losing its triple-A rating would seriously weaken the euro zone's bailout facility.
In the span of less than three months, President Nicolas Sarkozy has
responded by crafting out two austerity plans to save 19bn (US$26 bn) by the
end of next year. The second austerity plan came as the government slashed
its 2012 GDP expansion forecast to 1%rom 1.75% previously. Economists are
now concerned that austerity could significantly affect the country’ growth.
Burdened with pressures, France also comes under a dark spot which would
weigh heavily on the European bourses.