Moody's downgrades France's credit rating outlook to negative

In a statement from Moody's, it was reported that the country's credit rating has been affirmed at Aa2.

The statement, which noted that the credit rating outlook was revised from stable to negative, included the following: "The decision to change the outlook to negative from stable reflects an increased risk that the French government is unlikely to implement measures that would prevent wider-than-expected budget deficits and a deterioration in debt affordability."

The statement emphasized that the previously anticipated fiscal deterioration has exceeded expectations, noting that risks to France's credit profile have increased due to the political and institutional environment, and that budget management is weaker than previously assessed.

Pointing out that the country's debt affordability has worsened compared to its peers, the statement indicated that this weakening stems from large budget deficits and higher interest rates.

News Source: AA