She said Moody’s “The decision to change the outlook from stable to negative reflects the increasing risks of the possibility of a government not taking action France Measures that would prevent a larger than expected budget deficit and deterioration of debt sustainability“.
But the agency kept France’s credit rating at “AA2”.
She pointed out that the financial deterioration the country is witnessing “exceeds our expectations and contradicts the situation of governments in countries with a similar classification that tend to strengthen their public finances.”“.
The new French Finance Minister, Antoine Arman, said that he took note of the decision issued on Friday, but stressed that the country is capable of implementing “major reforms.”“.
He pointed out that the country’s economy is strong and pledged to correct public finances.
Earlier this month, Fitch maintained France’s rating at “AA-“However, it reduced the future outlook from “stable” to “negative,” indicating increasing risks at the level of financial policy..
Arman said in a statement to Agence France-Presse that the country must take “credible” steps to address its high deficit..