French paper reports Moody's warning on France

City A.M. Reporter
Ratings agency Moody's believes the recent rise in interest rates on French government debt and weaker economic growth prospects could be negative for France's credit rating, newspaper Le Figaro has reported the agency as saying.

"Presistently high financing costs combined with a deteriorating economic outlook could increase the difficulties that the government faces, with negative implications for credit," the newspaper quoted Moody's as saying.

Reuters has sought but was unable to obtain confirmation of the reported remarks from the the ratings agency.

France has a top-notch triple-A rating. On October 17, Moody's said it could place France on negative outlook in the next three months if the costs for helping to bail out banks and other Eurozone members overstretched its budget.