Phew! The rating agency Moody’s maintained France’s sovereign rating on Friday at the “Aa2” level with a stable outlook, judging the risk of default to be very low despite the recent deterioration of the country’s public finances.
France’s public deficit has slipped sharply to 5.5% of GDP in 2023 instead of 4.9% hoped for, and with 110.6% of GDP debt, it has the third highest debt ratio in the world. EU after Greece and Italy.
“AA-” for Fitch
The Fitch rating agency, which downgraded France’s sovereign rating last year, left it unchanged on Friday evening, at the “AA-” level with a stable outlook.
The agency had suggested at the start of the month that it did not intend to lower this rating further unless there was a “significant” increase in the debt, but its opinion was scrutinized: France’s public deficit has in fact significantly increased. skidded to 5.5% of GDP in 2023 instead of the expected 4.9%, and with 110.6% of GDP debt, it has the third highest debt ratio in the EU after Greece and Italy .
“Redouble your determination”
The French Minister of Economy and Finance, Bruno Le Maire, said he took “note” of the decision of the two rating agencies. “This decision should invite us to redouble our determination to restore our public finances and meet the objective set by the President of the Republic: to be below 3% deficit in 2027,” declared the minister in a press release.