In the statement made by Moody’s, it was reported that the country’s credit rating was downgraded from “Aa2” to “Aa3”.
It was stated in the statement that the downgrade reflects the view that the country’s public finances will weaken significantly in the coming years, and that political divisions are more likely to prevent a meaningful fiscal consolidation.
In the statement, it was reminded that the government fell at the beginning of December, and it was stated that the new government is expected to enact a special law in 2025 that will ensure the continuity of public administration. However, looking ahead, it was emphasized that the next government is unlikely to reduce fiscal deficits sustainably, and it was informed that France’s public finances are predicted to be weaker than predicted in October for the next 3 years.
In the statement, it was noted that the country’s credit rating outlook was revised from “negative” to “stable” and that the stable outlook reflected France’s significant credit strengths.
Moody’s changed France’s credit rating outlook from “stable” to “negative” in October.
