The price of France Télécom's bonds have fallen sharply on fears that the company's credit rating could be downgraded further than previously expected.
Spreads, or yield premiums over government bonds, widened by around 30 basis points after Moody's Investors Service placed the French telecoms company's Prime-2 short-term rating on review late on Monday, in an expansion of its ongoing review of the company. Moody's added that "a downgrade of up to two notches is now possible for the long-term ratings".
