France spared Moody's ratings downgrade as it struggles with unrest
The decision comes as protests, higher borrowing costs and a divided parliament threaten France’s effort to pass a deficit-cutting 2027 budget.
- On Friday, Moody maintained France's Aa3 credit rating, easing pressure on a government struggling with social unrest and strained finances.
- The agency's decision follows concerns over "fragmentation in parliament" and budget deficits, as The French government navigates political paralysis after a 2024 snap election.
- France's 10-year Bond yield hit 5.14%—the highest in 15 years on Thursday—while the 2027 budget targets a deficit of 5% versus 5.4% this year.
- Violent protests by student collectives and French CRS Officers escalated into riots last weekend, complicating the government's ability to pass the 2027 budget.
- With the presidential election approaching next year, Mike Bell, head of market strategy at RBC BlueBay Asset Management, warned further downgrades could "get more ugly.
67 Articles
67 Articles
Moody's has maintained France's long-term credit rating at Aa3 but kept its outlook negative. The international rating agency's decision was made after a periodic review of the rating and was reported by France Presse, which cited a report. The negative outlook means the agency continues to see a risk of a future downgrade. France retains its Aa rating, which is among the highest levels of creditworthiness, but remains under pressure due to the …
France is on the verge: 3.6 trillion euros in debt and a "black mark" from Moody's
France is on the verge: 3.6 trillion euros in debt and a "black mark" from Moody's.Amid the unrest, the international agency Moody's decided to maintain France's credit rating at Aa3, but the outlook turned "negative. "This is a serious wake-up call...
News quickly and reliably.
The international rating agency Moody's decided not to change France's long-term credit rating by keeping it at the Aa3 level with negative projections. Refraining to change the valuation is justified by the assumption that France will adopt a budget with a reduced deficit in 2027, transfers TASS with reference to AFP. The agency did not specify whether protests in the country were taken into account in formulating the forecast, but analysts are…
Moody's abstained on Friday, contrary to general expectations, from any action on the French debt rating, de facto maintaining his Aa3 rating with a negative outlook, reports AFP.
Coverage Details
Bias Distribution
- 48% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
