The rating agency Moody's confirmed its sovereign debt rating for France on Friday, December 2, as well as the "stable" outlook associated with it, affirming its confidence in the country's economy while its competitor S&P was more pessimistic. .
In a press release, Moody's thus maintained its "Aa2" rating, which according to the agency reflects the advantages of a
"rich and diversified economy, with a more favorable demographic profile than that of many other developed countries, as well as a good capacity to honor its debt maturities, despite high indebtedness
.
As for maintaining a stable outlook, it indicates that the risks weighing on the country's issuer profile are currently measured, according to the rating agency.
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France
"continues to reap the benefits of structural economic reforms, in particular that of the labor market, carried out in recent years"
, argues Moody's.
Thus, the government wants to make a
“pension reform which could tackle the problem of underemployment of seniors”
.
However, France's pace of deficit reduction is expected to be
"slower than that of most of its peers in Europe"
and the country is likely to miss its annual public deficit targets, with debt that could reach 116% of GDP. in 2026, anticipates Moody's.
Even debt stabilization seems out of reach, given the economic shock Europe is now facing - and in the worst-case scenario debt could climb to around 130% of GDP by the end of 2026. On Friday S&P Ratings reported maintained France's debt rating at "AA/A-1+" but did not rule out lowering it (outlook changed to "negative") due to the slowdown in its economy and the deterioration of its finances public, linked to aid paid to households and businesses to compensate for soaring energy prices.