Moody's downgrades France's credit rating – DW – 12/14/2024
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France's newly appointed premier faces the challenge of bringing down the country's spiraling fiscal deficit and thrashing out a 2025 budget.

Summary

Moody’s downgraded France’s credit rating from “Aa2” to “Aa3,” citing “political fragmentation” and limited prospects for addressing the country’s rising fiscal deficits.

The downgrade follows similar moves by S&P and Fitch and comes as Emmanuel Macron appointed Francois Bayrou as France’s fourth prime minister this year.

Bayrou replaces Michel Barnier, who was ousted after a no-confidence vote over his proposal to cut €60 billion in government spending.

Bayrou now faces the challenge of navigating a divided legislature to draft a 2025 budget and address the country’s economic instability.