Moody's affirms France's credit rating and leaves outlook negative

International credit rating agency Moody's has completed its periodic review of France's credit ratings. The announcement stated that the country's credit rating of 'Aa3' was maintained, but the outlook remains negative.

In the statement made by Moody's, it was stated that France's "Aa3" credit rating is supported by its wealthy and diversified economy and strong public institutions. It was emphasized that a fragmented parliamentary structure, political and social instability, a high and increasing debt burden, and the weakening of debt affordability metrics constitute the core credit challenges. It was conveyed that the debt burden has exceeded expectations due to the slowdown in economic growth and the increase in the budget deficit since the previous review.