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Moody’s warns on French borrowing costs

Associated Press / November 22, 2011

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Ratings agency Moody’s warned Monday that France’s creditworthiness remains under pressure after market jitters last week saw its borrowing costs rise to record levels. In recent weeks, amid widespread unease over the future of the euro, the interest rate or yield France pays to borrow money has shot up, raising questions about whether it will lose its cherished AAA rating - the highest level possible. All three of the major ratings agencies have France at Triple A, but Moody’s said in October that it was reviewing the second part of the country’s rating: its outlook. That outlook is currently “stable,’’ but could change during the review.

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