Moody's Downgrades France's Credit Rating Outlook

Forex - International credit rating agency Moody's has downgraded France's credit outlook to negative due to political challenges in controlling public finance deterioration and inflated budget deficits. According to Moody's statement, the country's credit rating remains confirmed at "Aa2." However, the outlook has been revised from "stable" to "negative." Moody's noted that this decision reflects the heightened risk that the French government may struggle to implement measures to prevent larger-than-expected budget deficits and deterioration in debt repayment capacity. The statement emphasized, "The financial deterioration we have observed so far is beyond our expectations and contrasts with governments of similarly rated countries that are tending to consolidate public finances in the current environment." This downward revision follows Fitch's two-week-old "negative" outlook assessment of France's creditworthiness and Scope's downgrade from "AA" to "AA-" one week prior. The next scheduled review will be from S&P Global on November 29, which had already downgraded France earlier this year.