Moody’s itself said that the rating remains so high — now Aa1, just a notch below triple-A —because of the size of the French economy and the government’s commitment to make structural reforms. It kept the rating’s outlook at negative, meaning it could face future downgrades.
Moscovici said he expected the country to continue to be able to borrow at those historically low rates because of the seriousness of its reform package. Analysts warned, however, that French banks could next face downgrades, since they are significant holders of French government debt and ultimately backed by the government.
Geir Moulson in Berlin and Carlo Piovano in Brussels contributed to this report.