Moody's downgrades France's credit rating to Aa3

Published at: 16/12/2024 12:23 PM

This Monday, the international rating agency Moody's Investors Service downgraded France's credit rating from "Aa2" to "Aa3" and changed the country's long-term outlook from “stable” to “negative”.

“The decision to downgrade France's rating to Aa3 reflects our view that French public finances will be significantly weakened by the country's political fragmentation, which will limit the scope and scale of measures that can reduce the large deficit in the foreseeable future,” the statement said.

According to information published by Sputnik, the downgrade came hours after French President Emmanuel Macron nominated Francois Bayrou as the country's new prime minister last Friday, replacing Michel Barnier, who was overthrown in a motion of censure on December 4.

“Looking ahead, there is now very little chance that the next government will sustainably reduce the size of fiscal deficits beyond next year,” the ratings agency said.

Mazo News Team