Moody's Maintains France's Aa3 Credit Rating Amid Political Instability and Fiscal Pressures

Key summary

Moody's has kept France's sovereign credit rating at Aa3 with a negative outlook, citing social unrest and political fragmentation that could hinder fiscal management. The report highlights a budget deficit of approximately 5.5% of GDP against the EU 3% ceiling, public debt exceeding $1 trillion due in 2073, and rising borrowing costs with 10-year bond yields surpassing 5% for the first time since 2005. Over 500,000 protesters recently demonstrated against public service decline and high living costs.