The Moody’s International Credit Roating Agency reduced the France credit rating to the AA3 and changed the forecast to the “stable”.
Moody’s explained the decrease in the credit rating by the fact that the country’s public finances will significantly weaken in the coming years, and political disagreements are more likely to impede significant fiscal consolidation.
The rating agency expressed doubt that the new French government will be able to reduce the budget deficit on a sustainable basis.
It is expected that the public finances of France over the next three years will be weaker than forecasts made in October – follows from the message.
In addition, the forecast of the country’s credit rating was also revised from the “negative” to “stable”. A stable forecast reflects the significant creditworthiness of France, the message is noted.
In October, Moody’s Agency changed the forecast of France’s credit rating from the “stable” to “negative”.