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Moody's Lowers France's Outlook Amid Political Turmoil

10/27/2025

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Story summary

Moody's Investors Service kept France's Aa3 credit rating but changed the outlook to negative amid political instability affecting budget management.
Prime Minister Sébastien Lecornu's government struggles to pass a budget as debt climbs, aiming for a 5.4% deficit of GDP this year and below 3% by 2029.
Recent downgrades by other agencies raise borrowing costs, while pension reform is postponed to gain support as opposition parties demand concessions.

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Story summary

Moody's Investors Service kept France's Aa3 credit rating but changed the outlook to negative amid political instability affecting budget management.
Prime Minister Sébastien Lecornu's government struggles to pass a budget as debt climbs, aiming for a 5.4% deficit of GDP this year and below 3% by 2029.
Recent downgrades by other agencies raise borrowing costs, while pension reform is postponed to gain support as opposition parties demand concessions.