Ratings agencies keep assessment of France's debt unchanged

Two major ratings agencies left their assessment of France's huge debt pile unchanged Friday, but cast doubt on the government's debt reduction target.

Moody's maintained France's sovereign rating at "Aa2" with a stable outlook. Fitch, which downgraded its rating for France last year, left it unchanged at "AA-" with a stable outlook.

France's public deficit widened to 5.5 percent of GDP in 2023, overshooting the government’s 4.9 percent target. And with the debt stock equal to 110.6 percent of GDP, France has the third highest debt ratio in the European Union after Greece and Italy.

Read moreFrance avoids S&P credit downgrade despite concerns over national debt

The government has set a target of bringing debt below 3.0 percent of GDP by 2027. But both agencies cast doubts.

Moody's said it was "unlikely" that France will hit its deficit target of 2.9 percent in 2027. "Progress in sustainably reducing the budget deficit and government debt is limited," it said in a commentary.

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