Moody's keeps France's Aa3 rating but warns of negative outlook

Moody's maintained France's sovereign rating at Aa3 with a negative outlook on Friday, October 23, defying expectations of a downgrade that most observers had anticipated. The agency stated the Aa3 rating assumes a 2027 budget reducing the deficit will be adopted, while financing costs and social tensions moderate. Prime Minister Sébastien Lecornu welcomed the decision as disproving "declinist forecasts" from experts speculating on French debt. Finance Minister Roland Lescure called it recognition of economic solidity and budget credibility. The decision comes as Parliament debates the budget and the country braces for potential new violence on Saturday.