France Faces Moody’s Sovereign Credit Rating Decision Amid Recent Downgrades
Following downgrades by Fitch and S&P, Moody’s rating decision today could further impact France’s sovereign credit status and economic stance.
- • France was downgraded by Fitch in September and S&P in October 2025.
- • Moody’s is set to announce its sovereign rating decision on October 24, 2025.
- • A downgrade by Moody’s would be its fourth for France since 2012.
- • France’s current AA rating ranks it 19th globally but has slipped post recent downgrades.
- • Credit rating agencies assess state debt repayment ability, influencing borrowing costs.
Key details
France’s sovereign credit rating has come under intense scrutiny following recent downgrades by major rating agencies Fitch and Standard & Poor’s (S&P). Moody’s is expected to announce its rating decision on October 24, potentially marking its fourth downgrade of France since 2012.
Fitch downgraded France’s credit rating on September 12, followed by S&P’s downgrade a week later. These moves reflect concerns over France's deteriorating deficit and debt levels, subdued economic growth prospects, and the postponement of pension reforms. Moody’s decision is closely watched as it could either downgrade France or shift its outlook from 'stable' to 'negative.' Economist Éric Dor highlighted that such a downgrade would be logical given worsening fiscal indicators.
Currently, France holds an AA credit rating, placing it 19th globally—on par with countries like the United Kingdom, Czech Republic, Ireland, and Belgium. However, post-downgrades by Fitch and S&P, France’s global standing has slipped, ranking 25th and 27th respectively. Should Moody’s also downgrade France, the country would be aligned with A1-rated nations such as China and Japan but remain ahead of Portugal and Spain.
Credit rating agencies evaluate a government’s ability to repay debt, with ratings ranging from AAA for prime creditworthiness to D for default. These ratings critically impact investors' decisions and the borrowing costs for countries. Notably, agencies provide governments with a 24-hour notification before making rating announcements, ensuring procedural transparency.
This cluster of rating actions underscores heightened concerns about France's fiscal health amid ongoing budgetary debates. The upcoming Moody’s verdict could further influence France’s financing costs and economic policy decisions in the near future.