France’s credit-rating outlook cut to negative by Moody’s – POLITICO

Ratings agency Moody’s downgraded the outlook on France’s credit rating to negative on Friday due to concerns over the country’s debt and deficit.

Moody’s cited the “increasing risk that France’s government will be unable to implement measures that would prevent sustained wider-than-expected budget deficits and a deterioration in debt affordability.”

The decision comes as French Prime Minister Michel Barnier appears headed for a major clash with President Emmanuel Macron over the country’s public finances. Macron has declined to publicly endorse Barnier’s efforts to rein in the deficit through tax hikes and spending cuts.