...CA operates predominantly in France (AA/Stable), a high value-added, diversified and stable economy. French GDP growth was 1.1% in 2016, and Fitch forecasts modest growth of 1.3% in 2017 and 1.2% in 2018. Fitch considers high unemployment as a rating weakness. Labour protection rules that limit employers' flexibility in adapting to economic cycles, combined with a generous benefits system, have contributed to France's high unemployment rate, estimated at 10% at end-2016, in Fitch's view. The unemployment rate is expected to decrease only slightly to 9.6% in 2018. CA is also present in Italy (BBB+/Negative), which like France is a large, high value-added and diversified economy. The country nevertheless suffers from a high gross general government debt level estimated at 133% of GDP at end-2016 by Fitch. Italy exited recession in 2015, but its growth outlook remains weak, with growth forecast at 0.9% for 2017 and 1.0% for 2018. Unemployment is higher than in France (12% at end-2016) and...
