By surprise lowering France's rating, which is very rare, Moody's issues a “warning” to Paris

The announcement is not surprising in itself, but it was not planned. The downgrading of France's rating by Moody's confirms doubts about a recovery of the country's public finances. The American rating agency thus judges the probability “weak» to see the next government led by François Bayrou «sustainably reduce the extent of the budget deficit beyond next year“. Although Moody's has sent warning signs – the negative outlook of the previous rating and its criticism of the Barnier government's censorship – Bercy, which “takes note» of Moody's decision, seemed not to expect such a rapid deterioration.