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Chinese credit rating agency Dagong Global Credit Rating Co. has downgraded the sovereign credit rating of France.
The drop affects both local and foreign currency credit, which fell to A+ from AA- , with a negative outlook.
The rating agency said that the French recovery will be weak, and that fiscal consolidation policies are unlikely to reach projected goals. Meanwhile, the quantity and quality of French debt is another major factor in the ratings decision.
Notably, the Chinese agency's cut comes before any major Western agency has lowered France's credit rating--and in the midst of intensive French and German efforts to revitalize the eurozone. Ratings giants like Standard and Poor's have kept France at AAA.