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Moody's warns France on possible negative outlook

New York (Reuters)-moody's, warned that it may be on Monday to slap a French AAA credit rating negative outlook in the next three months, if help out of trouble bank and other eurozone members too much stretch its budget costs.
Warning the leaders of the European Union are discussing measures to protect the region's financial system, from Greek debt default expected. These measures include: to bank transfers and contact the Greek debt.
France and Germany are the two strongest 17 eurozone members of the economy, and they took the lead in between the leaders of the European Union in Sunday's meeting in the region, help solve the debt crisis of the proposed a plan.
The French at key financial and economic reform, and in the financial markets or economic potential drawbacks of development of the progress that will also take into account the according to review, moody's said.
Negative outlook will be a sign for the future may, moody's rating downgraded its in France. Moody's placed in August the AAA rating outlook for the negative.
"Debt index, and to further possible a contingent liability of the deterioration in the government debt rating AAA stable future pressure," moody's said in a statement.
France, it said, now of the space less than its fiscal stretches 2008 case during the financial crisis.
France may face a series of challenges, in the next few months, such as the need to other European countries or his bank system provide additional support, moody's said.
For countries to maintain its rating outlook, it will need to prove stable its "will continue to contribute to implementing the necessary economic and financial reform measures, the rating agencies said."
The government will also in its debt ratio, in order to show "significant progress, and realize the targeted sustainable improvement", moody's said.
France's debt indicators, the AAA counterparts in the weakest now, the agency said, but they still is a favorable debt burden ability, or in the government income relatively low interest burden of support.
But very high debt levels of financing capability "investor confidence in the ability of the government, and intend to cope with the challenge is unforeseeable," moody's said in a report.




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