By Stephen Nakrosis
France's credit rating was cut on expectations that the country's finances will substantially weaken in coming years and that the increasing likelihood of political fragmentation will impede the chances of meaningful fiscal consolidation, Moody's said Friday.
The country's domestic- and foreign-currency long-term issuer and domestic-currency senior unsecured ratings were cut one level to Aa3 from Aa2, while its outlook was raised to stable from negative.
The credit rating company said there is a very low probability that France's next government will sustainably reduce the size of fiscal deficits beyond 2025. It now forecasts France's public finances will become materially weaker during the next three years compared to its October 2024 baseline scenario.
The rating also reflects moderate exposure to event risk driven in part by Russia's war in Ukraine, the company said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
December 13, 2024 18:58 ET (23:58 GMT)
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