Business · Markets · 52 mins ago
Moody’s keeps France’s credit rating unchanged
Moody’s did not downgrade France, avoiding a setback for President Emmanuel Macron’s government.
Before the decision, Moody’s rated France AA3, while Standard & Poor’s and Fitch rated it one step lower.
France’s public finances are strained, and political divisions have made agreement on a budget difficult.
The government needs a budget compromise to reduce the deficit, which it aims to bring to 5% of gross domestic product in 2027.
France’s 10-year borrowing rate briefly topped 5%, its highest level in nearly 25 years, making new borrowing more expensive.
Markets had already factored in a possible downgrade, so the decision may have limited effects on borrowing costs.
Investors are still buying French debt, and the government can take steps to change its budget plans, though its room to act is narrowing.
Moody’s kept France’s sovereign debt rating at Aa3 on Friday, 23 October, with a negative outlook.
The decision left France with its Moody’s “double A” rating, despite expectations among many economists that it would be downgraded.
Moody’s rating is more favourable than the A+ ratings assigned to France by Fitch and S&P.
The agency cited France’s high public debt and political instability as challenges to reducing the budget deficit.
France’s government has presented a 2027 budget plan focused on reducing debt.
- Who
- Moody’s, the US credit rating agency, kept France’s sovereign debt rating unchanged.
- What
- It maintained the rating at Aa3 with a negative outlook.
- When
- Friday, 23 October 2026.
- Where
- France.
- Why
- The sources say Moody’s cited high public debt and political instability as challenges, while it expected the government’s budget plan and reduced social tensions to help.
Moody’s
Economists expecting a downgrade
Rating decision
Moody’s
Moody’s kept France at Aa3 with a negative outlook.
Economists expecting a downgrade
Many economists had expected a one-notch downgrade to A1.
Fitch kept France’s debt rating at A+ with a stable outlook.
Scope lowered its long-term rating for France to A+ and changed its outlook from negative to stable.
France’s 10-year borrowing rate crossed 5% for the first time since 2002, according to BFM Business.
Moody’s kept France’s sovereign debt rating at Aa3 with a negative outlook.
- Moody’s rating
- Aa3
- Moody’s outlook
- Negative
- Other agencies’ ratings
- Fitch and S&P: A+
- France’s 2027 debt outlook
- Moody’s said public debt would exceed 120% of GDP in 2027
- 10-year borrowing rate
- Crossed 5% on the Wednesday before 23 October, according to BFM Business
13 sources
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What people are saying
This announcement defies the pessimistic predictions of many experts and those who speculate about French debt
This decision is recognition of the strength of our economy and the credibility of the budget presented by the government, which aims to continue restoring public finances
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L’agence de notation Moody’s maintient ce soir la note souveraine de la dette française. Cette annonce déjoue les pronostics déclinistes de nombreux « experts » et de ceux qui spéculent sur la dette française. Le gouvernement a proposé au Parlement un budget sérieux avec une