US EditionMoody's maintains France's rating, revises outlook to 'negative'
- On Friday, October 24, Moody's maintained France's credit rating at AA3 but placed it on a negative outlook, leaving France still holding an AA-level rating.
- Amid a fragmented parliament, the agency noted the lack of a majority in the Assemblée Nationale and lawmakers abandoning the 2023 pension reform, driving the negative outlook.
- Economic strength coexists with fiscal risks as Moody's said the banking sector is 'robust', household and business finances are 'sound', and warned the pause in the planned increase in the legal minimum retirement age would raise costs within years.
- Unless political conditions improve, Moody's said the next decision will likely be a downgrade as instability risks hampering the government's ability to address the fiscal deficit, debt burden and borrowing costs.
- Unlike Fitch and S&P, Moody's did not downgrade after their September 12 and October 17 A+ cuts, linking its decision to the Parti Socialiste's suspension win.
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Moodys maintained France's note to AA3 but nevertheless lowered the prospect of "stable" to "negative" in order to put pressure on the country, while budgetary debates are continuing in the Assembly. However, this warning is not of particular importance.
While the agencies Fitch, Morningstar DBRS and S&P Global have decided to degrade France's economic rating in recent weeks, the US agency Moodys has decided to keep it, Friday 24 October, reports BFM TV. Loading... If its note therefore remains in Aa3, which is a good note, the agency has nevertheless lowered the prospect of "stable" to "negative". Moreover, Moodys, alert on the "political fragmentation" of the country that risks "damaging the f…
As the debate on the budget continued, the rating agency maintained the French debt note, while its competitors had lowered it.
Moodys is the last credit rating agency to render a verdict on France's finances. If it has retained the AA3 rating, it gives it a negative perspective.
Moody’s keeps France’s credit rating but warns about ‘negative’ outlook
Credit ratings agency Moody’s on Friday maintained France’s Aa3 sovereign rating but downgraded its outlook to “negative” from “stable,” warning that mounting political fragmentation could hinder efforts to rein in the country’s swelling deficit.
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