Moody's has revised its outlook on France's Aa3 sovereign credit rating to negative from stable, citing concerns that political fragmentation may impede the government's ability to reduce its budget deficit. The rating agency highlighted increased risks to France's fiscal consolidation plans. In response, French Finance Minister Roland Lescure acknowledged the decision, stating it underscores the necessity of a collective approach to budgetary compromises. The government remains committed to its deficit reduction targets, aiming to bring the public deficit below 3% of GDP by 2029. This action from Moody's follows recent downgrades and outlook changes for France from other rating agencies, including Fitch and S&P Global. The benchmark French stock market index, the CAC 40, closed flat following the announcement.