Standard and Poor’s downgrades France’s credit rating to AA

S&P has cut France’s credit rating to AA from AA+.

The move comes almost two years after France lost its top-rated AAA status.

S&P said it downgraded France because high unemployment in the country was making it hard for the government to make important reforms which would boost growth.

S&P has cut France’s credit rating to AA from AA+

The French government responded by saying that its debt rating was one of the safest in the eurozone.

The country’s Finance Minister, Pierre Moscovici, said S&P had made “inaccurate criticisms” of his country.

Pierre Moscovici said in a statement: “During the last 18 months the government has implemented major reforms aimed at improving the French economic situation, restoring its public finances, and its competitiveness.”

In theory, a lower credit rating makes borrowing more expensive.