Moody's revises France's outlook to 'negative' from 'stable' on political instability risks

Credit ratings agency Moody's on Friday revised France's outlook to "negative" from "stable", citing increased risks from political fragmentation, which could continue to undermine the effectiveness of the country's legislative institutions.

Moody's, in a statement, warned that political instability may hinder the government's ability to tackle key policy challenges, including a high fiscal deficit, mounting debt levels and persistently elevated borrowing costs.

France's long-term foreign currency sovereign credit rating was affirmed at "Aa3."