PARIS, April 11 (Xinhua) -- Credit ratings agency Moody's has maintained France's sovereign rating at Aa3, affirming that its debt remains of "high quality," while keeping a negative outlook.
According to the agency, the decision released on Friday is underpinned by solid economic fundamentals, including the size and diversification of the French economy as well as the strength of its institutions, which support the government's ability to meet its financial obligations.
Moody's also noted a recent improvement, with the public deficit reduced to 5.1 percent of GDP in 2025, lower than previously expected, making the 5 percent target for 2026 "more achievable."
However, the agency warned of external risks. The conflict that broke out in Iran in late February has already contributed to rising inflation and higher interest rates, developments that could weigh on debt sustainability and complicate fiscal adjustment.
Other major rating agencies hold similar but slightly more cautious views. Standard & Poor's and Fitch Ratings both assign France an A+ rating with a stable outlook, one notch below Moody's assessment, reflecting comparable concerns over the country's public finances. ■
