S&P lowers France credit outlook to negative

NEW YORK (AP) — Standard & Poor's Rating Services is lowering its outlook on the credit of France to negative from stable, saying the country's economic picture is dimming.

The firm says the French economy may have trouble recovering because the nation's government may not be able to implement reforms that will lead to growth. S&P lowered its projections of France's economic growth over the next three years and predicted that the nation's government deficits will take up a larger portion of its GDP.

Standard & Poor's is maintaining an 'AA' rating on the French economy. That is its third-highest possible rating, and it says France is productive, has high per-capita income, low levels of household debt, and high levels of private-sector domestic savings.