Moody's maintains France's sovereign rating at Aa3, but assigns a negative outlook

Moody's refrained from downgrading France's debt rating, maintaining it at Aa3 with a negative outlook. This decision defied expectations of a downgrade that would align France with ratings from Fitch and S&P. Moody's stated that the Aa3 rating assumes a budget for 2027 aimed at reducing the deficit will be adopted, alongside a moderation of financing costs and social tensions. Prime Minister Sébastien Lecornu praised the decision, highlighting the political forces that facilitated budget discussions. He emphasized the importance of presenting a budget that meets the 5% public deficit target by year-end. Economy Minister Roland Lescure noted this decision reflects the strength of France's economy and the credibility of the government's budget proposal.