Moody’s has affirmed France’s sovereign credit rating at Aa3 and kept its negative outlook, saying the country’s debt remains high quality.
The agency said Friday the rating reflects France’s large, diversified economy and strong institutions, which support the government’s ability to meet its obligations.
Moody’s noted an improvement in public finances, with the deficit expected to fall to 5.1% of GDP in 2025, lower than earlier forecasts. It said that makes the government’s 5% target for 2026 more achievable.
The agency also warned of external risks, saying the conflict that erupted in Iran in late February has contributed to higher inflation and rising interest rates, which could weigh on debt sustainability and complicate fiscal adjustments.
Standard & Poor’s and Fitch both rate France A+ with a stable outlook, one notch below Moody’s, citing similar concerns about public finances.