Reuters reports that Moody’s completed its October 23 review without lowering France’s Aa3 rating; the negative outlook remains. The agency assumes a deficit-reducing 2027 budget will pass and financing costs and social tensions will ease somewhat. Parliament has removed some planned savings from a budget targeting a deficit of 5% of output, versus 5.4% in 2026. France’s 10-year yield had reached 5.14% on Thursday, before the review outcome.
Related currencies / asset groups: EUR
Reuters reports that Moody’s concluded its October 23 periodic review with France’s Aa3 rating and negative outlook unchanged.
live.euronext.comMoody’s assumes adoption of a deficit-reducing 2027 budget and some easing of financing costs and social tensions in coming months.
live.euronext.comThe 2027 budget targets a deficit of 5% of output versus 5.4% in 2026; parliament has scrapped some key savings measures.
live.euronext.comReuters reports that France’s benchmark 10-year yield reached 5.14% on Thursday, October 22, its highest since July 2002; this preceded the review outcome.
live.euronext.comLimitation: Moody’s assessment assumes fiscal and social improvements; parliamentary opposition could reject the budget and threaten the government.
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