Moody's fires warning on France's AAA status

Credit rating agency Moody's has warned on the status of France's AAA-rating after the yield on its bonds spiked last week.

Yields on French 10-year bonds rose to 3.7%, taking the the spread over German bunds to a euro-era record high above 200 basis points. The move has prompted Moody's to warn on France's AAA-rating, the FT reported. "Elevated borrowing costs persisting for an extended period would amplify the fiscal challenges the French government faces amid a deteriorating growth outlook, with negative credit implications," the US rating agency said in a weekly credit outlook note. Moody's took into account the government's efforts to control its budget and pointed out that current yields remained ...