Moody's Set to Rule on France's Credit Rating as Unrest and Debt Mount

France faces a potential credit rating downgrade from Moody's on Friday, adding pressure to a government already struggling with social unrest and strained finances. The decision is expected after US markets close. Most analysts expect Moody's to cut France's Aa3 rating, which has had a negative outlook since October last year. A downgrade would align Moody's with Standard & Poor's and Fitch, which acted earlier as France struggled with public finances following a hung parliament. French borrowing costs already exceed lower-rated peers like Italy, with the risk premium over German bonds hitting a 15-year high on Thursday. Violent protests over underfunded schools and cost-of-living demonstrations have complicated budget cuts, while a presidential election looms next year.