FX.co ★ Moody's Cuts France's Outlook to Negative, Maintains Ratings

Moody's maintained France's long-term foreign-currency sovereign credit rating at Aa3 on Friday, but shifted its outlook from stable to negative, citing growing risks from political fragmentation that could impede efforts to control the country's deficit. Recently, Fitch, DBRS, and S&P Global all downgraded France’s ratings within a little over a month. Finance Minister Roland Lescure responded by emphasizing the vital importance of pursuing a collective approach towards achieving a budgetary compromise. He stated, "The government remains committed to reaching a 5.4% of GDP deficit by 2025 and aims to ambitiously reduce the public deficit below 3% of GDP by 2029, all while supporting growth." Currently, Standard & Poor's credit rating for France is A+ with a stable outlook, and DBRS last rated France at AA with a stable outlook.