Debt: Moody's spares France, "a brief respite", not a "vote of confidence"

An unexpected piece of good news: Moody's has left France's sovereign debt rating untouched. Although markets had widely expected a downgrade, the New York-based agency on Friday evening maintained its assessment at Aa3 with a negative outlook.France's ten-year borrowing rate (OAT) has soared this week, while the country is under strain after the riots of 17 October, which have added to investor unease. Moody's nevertheless justified its stance in a statement, explaining that "the Aa3 rating is based on the assumption that a 2027 budget reducing the deficit will be adopted, while funding costs and social tensions will moderate somewhat over the coming months".As soon as the announcement was made, the government rushed to hail the decision. Economy Minister Roland Lescure was the first to react. He sees in it "recognition of the strength of our economy and the credibility of the budget" presented by the government.