Fitch downgrades France's credit rating

General view of the Champs-Elysees avenue in Paris, on November 20, 2014Ratings agency Fitch cut France’s credit grade by one notch to “AA” on Friday, saying Paris’s efforts to trim its fiscal deficit have fallen short to avoid a downgrade. “The weak outlook for the French economy impairs the prospects for fiscal consolidation and stabilizing the public debt ratio,” Fitch said. The AA grade — two steps below the top triple-A rating — was decided despite France having reduced its projected deficit for fiscal 2015 to 4.1 percent of GDP, down from 4.3 percent, under pressure from the European Commission. “On its own, this will not be sufficient to significantly change Fitch’s projections of France’s government debt dynamics,” the agency said.

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