By love-89.com On October 25, Moody’s Investors Service downgraded France’s credit rating outlook from “stable” to “negative,” citing concerns over the government’s financial situation. This shift raises the possibility of a future credit rating downgrade.
According to a report from AFP, Moody’s indicated that this adjustment reflects their belief that the French government is unlikely to take necessary measures to prevent the budget deficit from exceeding expectations and to halt the deterioration of debt-bearing capacity.
In their statement, Moody’s maintained France’s credit rating at Aa2, highlighting the country’s “large, wealthy, and diverse economy” as a positive factor. However, the agency pointed out that the deterioration in France’s financial situation has “exceeded our expectations,” contrasting sharply with trends in similarly rated countries that are working towards strengthening their public finances.
France’s new Minister of Finance, Antoine Armand, acknowledged Moody’s action but emphasized that France is capable of implementing “far-reaching reforms.” He noted that some measures have already shown results and expressed confidence in the country’s economic strength, pledging to restore national financial stability.