Credit rating agency Moody’s has downgraded France, following months of political crisis and the appointment of centrist politician François Bayrou as prime minister.
The country now has a rating of Aa3, which is the fourth highest level.
Moody’s cited France’s “political fragmentation” in its decision, which comes after parliament threw Michel Barnier’s government into a historic vote of no confidence following a stalemate over an austerity budget.
“The decision to downgrade France’s credit rating to Aa3 reflects our view that France’s public finances will be significantly weakened by the country’s political fragmentation which, for the foreseeable future, will limit the scope and size of measures that could reduce the large deficits,” Moody’s said in a press release.