Moody's stripped France of its triple-A rating last week, citing "deteriorating economic prospects," the "long-standing rigidities of its labor, goods and services markets" and "exposure to peripheral Europe." And it could get worse: "We would downgrade the rating further in the event of an additional material deterioration in France's economic prospects," says Dietmar Hornung, Moody's lead analyst for France.

Don't think, however, that the French government is unduly alarmed. Finance...