19 Oct 2011

Credit rating warning issued for France

6:51 am on 19 October 2011

A warning has been issued by Moody's about France's credit rating.

The agency said it may change its "stable" outlook on France's top AAA rating to "negative" in the coming months.

Explaining its announcement, Moody's said the financial strength of the French government "has weakened".

It is concerned about the impact on French finances of the government having to contribute more funds to help bail out indebted eurozone countries and commercial banks exposed to eurozone sovereign debt.

The BBC reports Moody's warning about France renewed concerns about the eurozone debt crisis.

European Union leaders are due to meet on Sunday to try to agree on concrete proposals to solve the crisis.

Separately, new figures showed that China's economic growth slowed to 9.1% in the three months to the end of September from a year earlier, down from 9.5% in April to July.