Moody's keeps France's Aa3 rating with negative outlook amid political turmoil

Moody's maintained France's Aa3 credit rating but kept a negative outlook, citing political fragmentation and social unrest that could impair the government's ability to address fiscal challenges. The agency warned that instability risks hampering efforts to tackle an elevated fiscal deficit, rising debt, and higher borrowing costs, potentially weakening key credit metrics. Moody's said it could stabilize the outlook if institutions narrow the deficit. France faces a 5.5% deficit-to-GDP ratio, above the EU's 3% limit, with 10-year bond yields surpassing 5% for the first time since 2002. The country also confronts over $1 trillion in debt maturing by 2030.