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France's credit outlook cut to negative by Standard and Poor's

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France's credit outlook cut to negative by Standard and Poor's

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Ratings agency Standard and Poor’s has cut France’s credit outlook from stable to negative, over concerns about the country’s sluggish economic recovery.

GDP failed to expand during the second quarter and has grown by only 0.2 percent in the third, according to the Bank of France.

France retained its credit rating, the third highest at S&P, although the agency said the negative outlook would force this downwards within the next two years.

It also predicted that its budget deficit will average over 4 percent of GDP between 2014-2017, although France says structural reforms are underway to remain within the EU threshold of 3 percent.

France’s finance minister, Michel Sapin, said France’s debt is one of the surest in the world, adding that debt levels were contained.