Dagong Global Credit Rating Co., Ltd., China's domestic rating agency, on Thursday maintained France's local and foreign currency sovereign credit ratings at A+ with a negative outlook.

French fiscal policies can help improve its financial conditions amid the European sovereign debt crisis, but current measures are aimed at expanding taxes and are not tackling the core problems that have been burdening French finance, the rating agency said.

The French economy will be sluggish in the near future due to structural problems, including soaring labor costs, the rating agency said.

Dagong forecast 0.2 percent growth in the French economy this year and 0.4 percent growth in 2013.

The French economy will face a kind of stagnation in the short term, which will burden the country's financial policies and decrease its solvency. Based on these factors, Dagong maintains a negative outlook for French local and foreign currency sovereign credit ratings over two years. Endi

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