Moody’s Ratings kept France’s sovereign rating at Aa3 and its outlook negative on Oct. 23, leaving the government’s ability to pass a 2027 budget central to the fiscal assessment.
The French Finance Ministry confirmed the decision. Reuters and Le Monde reported that Moody’s review incorporated expectations for adoption of the 2027 budget and some near-term easing in borrowing costs and social strain.
An Oct. 1 government account sets a public-deficit target of 5.0% of GDP for 2027, against a 5.4% forecast for 2026. French Finance Minister Roland Lescure said the budget should pass by year-end and bring the deficit to 5%, calling the target “non-negotiable.” Reuters reported that opposition parties could reject the proposal.
The National Institute of Statistics and Economic Studies (INSEE) reported that general government debt under the Maastricht definition totaled €3,595.5 billion at the end of Q2 2026, equal to 119.0% of GDP. Debt increased €59.6 billion from the previous quarter, when it stood at 117.5% of GDP. The government’s Oct. 1 account projected €91.2 billion in debt-interest costs for 2027, an estimate covered in an earlier EconoTimes report on the budget’s interest projection.
Moody’s cut France’s rating to Aa3 from Aa2 in December 2024. The Finance Ministry’s October 2025 statement said Moody’s kept the Aa3 rating but changed the outlook from stable to negative.
Agence France Trésor lists Nov. 27 for Standard & Poor’s next review of France. INSEE is scheduled to release Q3 2026 debt data on Dec. 18.
