Moody's maintains France's rating despite high debt
Moody's maintains France's rating despite high debt

Moody's has decided to maintain France's sovereign debt rating at Aa3, with a negative outlook, thus avoiding a downgrade. This decision comes as the country's debt reaches over 115% of GDP and remains under market scrutiny.

The agency highlights several positive elements, including a budget agreement between different political forces and a slight improvement in public deficit forecasts. The deficit is now expected to be around 5% of GDP in 2026, a level lower than previous estimates.

A position distinct from other agencies


Unlike Standard & Poor's and Fitch, which have already downgraded France's rating, Moody's is taking a more cautious approach. However, it emphasizes the uncertainties linked to the economic and geopolitical context, which could weigh on the country's borrowing conditions.

Despite this stability, the trajectory of public finances remains a concern. Debt continues to rise and the deficit remains above European targets, raising the risk of future deterioration without sustained improvement.

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