In a pivotal moment for French economic policy, Moody's, one of the world's leading credit rating agencies, has decided to maintain France's sovereign credit rating at Aa3, despite the country's rising debt levels and social-political turmoil. This decision, announced on October 23, 2026, was met with a positive response from the French government led by Prime Minister Sébastien Lecornu. The government emphasized the importance of pursuing a budget that meets the public deficit target of 5% of GDP.
Moody's decision comes in the wake of several challenging years for France. The country has been grappling with rising debt levels and social-political turmoil, contributing to a sense of instability. Following a period of economic and social challenges in France, the agency noted that financing costs and social tensions are expected to moderate in the coming months.
Despite the concerns, Moody's has decided to keep France's credit rating at Aa3, with a negative outlook. This decision is based on the assumption that a 2027 budget will be adopted, which aims to reduce the deficit. The agency's statement highlights that financing costs and social tensions are expected to moderate in the coming months. This outcome has been seen as a significant victory for the French government, which has been working to navigate these complex challenges.
This decision is based on the assumption that a 2027 budget will be adopted, which aims to reduce the deficit.
In a statement, Prime Minister Sébastien Lecornu expressed his satisfaction with Moody's decision. 'This decision "dejoue les pronostics déclinistes" of those who spéculent sur la dette française', according to him.