Moody’s has maintained France’s sovereign rating at Aa3 with a negative outlook

Moody’s refrained today from taking any rating action on French debt, effectively maintaining the Aa3 rating with a negative outlook. A downgrade had been expected, which would have brought France’s rating into line with that assigned by the other major agencies, Fitch and S&P; however, in a statement, Moody’s clarified that ‘the Aa3 rating is based on the assumption that a 2027 budget capable of reducing the deficit will be adopted, and that, in the coming months, borrowing costs and social tensions in France will ease slightly’.