France loses AAA rating

France’s finance ministry said tonight that Standard & Poor’s had cut the country’s credit rating by one notch to AA.

France’s loss of its AAA-rating deals a heavy blow to the eurozone’s ability to fight off its debt crisis.

The country is the second-largest contributor to the currency union’s bailout fund.

S&P in December put 15 eurozone countries on creditwatch and other downgrades were expected later tonight.

The cut in France’s creditworthiness could also hurt President Nicolas Sarkozy’s re-election chances.