French Credit Rating Cut on Crisis That Imperils Finances
- Moody’s lowers France to three notches below maximum rating
- Macron’s effort to reduce deficit ran into political headwinds
Moody’s Ratings cut France’s credit grade, heaping pressure on the new government to bring a ballooning deficit under control after far-right leader Marine Le Pen toppled the previous prime minister over a budget dispute.
In an unscheduled change, Moody’s lowered its assessment of the euro area’s second-biggest economy to Aa3 from Aa2, three levels below the maximum rating. France has already been cut to equivalent levels by Fitch and S&P.