Overview
- The decision leaves Moody’s a notch above Fitch and S&P, which both cut France to A+ in recent weeks, with Morningstar DBRS also lowering its view in September.
- Moody’s cites a fragmented parliament and the partial reversal of structural reforms, highlighting the suspension of elements of the 2023 pension overhaul.
- France faces the eurozone’s largest public deficit and a debt load near €3.5 trillion, which the agency warns heighten fiscal sustainability risks.
- Economy minister Roland Lescure said the government takes note and remains committed to a 5.4% of GDP deficit in 2025 and a return below 3% by 2029.
- Markets reacted calmly, with 10‑year yields around 3.4% and some analysts saying pricing already aligns with an A to A‑ risk profile.