France loses top rating in downgrade

Credit ratings agency Moody's has downgraded France from its top rating.

The country's debt has been reduced from AAA to AA1 and has kept its negative outlook, meaning it could be downgraded again, the BBC reports.

In a statement, Moody's blamed the risk of a Greek exit from the euro, stalled economic growth and the chance that France will have to contribute to bailing out other countries.

It also warned that Italy's banks face worsening conditions over the coming year, with asset quality declining, low profitability and poor access to markets for funds.

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