Moody's retains French AAA rating, but keeps an eye on Hollande

International ratings agency Moody's says France will keep its triple A rating but has kept the country’s outlook ‘negative’ while it closely watches the policies of President François Hollande who says he wants to put growth above austerity. 

Reuters/Mike Segar

“Given the uncertainties linked to the crisis in the eurozone during the second half of the year and in particular after the upcoming legislative elections, Moody’s expects the current government to give a clearer picture of it policies,” the agency said.

Moody’s says France will lose its triple A rating if it does not put into place budgetary and economic measures to reduce its debt and stressed that among countries currently with a triple A rating, France is the most fragile.

The agency also said the French rating would be reduced if the financial situation in the eurozone becomes worse or the government had to intervene to bail-out the French banks.

Meanwhile, other agencies have maintained France’s current rating.

Standard & Poor’s which reduced the French rating to AA+ in January said Hollande’s election had not had an immediate impact while Fitch has already said it will not change the triple A rating before 2013.