Ratings agency Moody’s downgraded France’s credit rating to Aa3 with a stable outlook Saturday over what the group described as France’s “political fragmentation”. French President Emmanuel Macron appointed his centrist ally François Bayrou as prime minister Friday after the previous premier Michel Barnier fell to a no-confidence vote the week before.
Ratings agency Moody’s downgraded France‘s credit rating Saturday to Aa3 with a stable outlook, following months of political crisis and the appointment of centrist François Bayrou as prime minister.
Moody’s cited France’s “political fragmentation” in its decision, which comes after parliament ousted Michel Barnier‘s government in a historic no-confidence vote following a standoff over an austerity budget.
“The decision to downgrade France’s ratings to Aa3 reflects our view that France’s public finances will be substantially weakened by the country’s political fragmentation which, for the foreseeable future, will constrain the scope and magnitude of measures that could narrow large deficits,” the ratings agency said in a statement.
Bayrou’s appointment makes him France’s fourth prime minister this year, with Barnier being booted out after just three months in office.
(AFP)
Read more on FRANCE 24 English
Read also:
Macron’s choice: Can the president break France’s political impasse?
Reducing France’s debt is ‘moral obligation’, says new French PM François Bayrou