Moody’s maintains France’s rating despite budgetary and social tensions

Financial rating agency Moody’s has maintained France’s rating at Aa3, considering French debt to remain of high quality amid difficult negotiations over the budget and fears of further street violence.

The decision is based on the assumption that France will adopt a budget for 2027 that reduces the public deficit and that social tensions will ease in the coming months. The agency thus warns that its outlook depends on developments in the political and budgetary situation.

Prime Minister Sébastien Lecornu immediately welcomed the announcement on the X platform, saying it contradicted “declinist forecasts” and speculation about France’s debt. He stressed that political parties had agreed to open the budget debate according to a normal timetable, although the government does not have a parliamentary majority.

Lecornu said that maintaining the rating shows creditors that there is a path toward stabilizing public finances. The government’s objective is to adopt, by the end of the year, a budget compatible with reducing the deficit to 5% of GDP.

France is rated A+ by Fitch and S&P, a rating that has been maintained for several months. The divergence from Moody’s reflects differing assessments of political, social and fiscal risks.