Moody’s hands France a surprise downgrade


FILE PHOTO: French President Emmanuel Macron appears on screen as he makes a television address to the nation after Prime Minister Michel Barnier's government was toppled in a no confidence vote in parliament, in Paris, France, December 5, 2024. REUTERS/Christian Hartmann/File Photo

PARIS: Credit ratings agency Moody’s Ratings has unexpectedly downgraded France’s rating, adding pressure on the country’s new prime minister to corral divided lawmakers into backing his efforts to rein in the strained public finances.

The downgrade, which came outside of Moody’s regular review schedule for France, brings its rating to Aa3 from Aa2 with a stable outlook for future moves and puts it in line with those from rival agencies Standard & Poor’s and Fitch.

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