France Has Less Room to Maneuver on Balance Sheet, Moody’s Says

The French government has “less room for maneuver” on its budget, Moody’s Investors Service said, adding that it’s still assessing its stable outlook on the country’s top-rated debt.

“Relatively high levels of indebtedness, very high government expenditure in relation to nominal GDP and important structural fiscal deficits constrain the capacity for the government to respond to future shocks and weigh on the government’s fiscal strength,” Moody’s said in a “credit opinion” today.