Moody's Downgrades France's Outlook to 'Negative'

Moody's cut France's outlook to 'Negative' over political instability and fiscal risks; economic activity also showed sharp contraction in September.

Published: 10/25/2025, 20:07:00 UTC Updated: 1/25/2026, 18:32:08 UTC
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Moody's Downgrades France's Outlook to 'Negative'
Moody's Lowers France's Outlook to 'Negative' Amid Risks

Moody's warned in a statement that political instability may hinder the French government's ability to address challenges related to monetary and fiscal policies, such as rising budget deficits, increasing debt levels, and escalating borrowing costs.

The shift in outlook to 'Negative' indicates a heightened risk of downgrading the rating further if negative factors persist without improvement.

In another context, Standard & Poor's reported that French economic activity contracted in September at the fastest pace since April, with the composite Purchasing Managers' Index (PMI) registering 48.4 points, indicating a contraction.

The manufacturing PMI fell to 48.1 points, while the services PMI decreased to 48.9 points, reflecting weak demand.

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Edited & Reviewed by the EcoPulse24 Editorial Team 2025-10-26 14:28
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