The ratings agency affirmed France’s credit rating at Aa2, noting that this was supported by its “large, wealthy and diversified economy.” But it lowered the country’s outlook to negative from stable.
“The fiscal deterioration that we have already seen is beyond our expectations and stands in contrast with governments in similarly rated countries that are tending to consolidate their public finances in the current environment,” Moody’s said.
“The risks to France’s credit profile are heightened by a political and institutional environment that is not conducive to coalescing on policy measures that will deliver sustained improvements in the budget balance,” it said.