1209 GMT - French corporate credit spreads remain tight compared to their sovereign peers, leaving them vulnerable to widening, Morgan Stanley credit strategists say in a note. France faces a weak fiscal outlook, political uncertainty, and a deteriorating credit rating outlook, which could cause sovereign spreads and credit spreads to widen in the coming months, the strategists say. "We expect historical correlations to reassert themselves, with banks particularly exposed given their higher [sensitivity] to sovereign spreads."
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