Moody's keeps France at Aa3: what such decisions do and don't change for a mortgage and savings

On Friday 23 October, Moody's decided not to downgrade France's credit rating. It stays at Aa3, and the outlook remains negative. Many analysts had expected a cut of one notch, to A1. Reuters reported the decision (published on Boursorama on 24 October).

What the agency decided

Moody's kept the rating on two conditions. First, a budget that reduces the deficit has to be adopted for 2027. Second, borrowing costs and social tensions have to ease somewhat over the coming months. Reuters gives figures from the draft 2027 finance bill: the deficit is 5.4% of GDP this year, with a target of 5.0% for 2027.

Prime Minister Sébastien Lecornu wrote on X that the decision sends a signal to France's lenders, and he called for a budget to be adopted by the end of the year with a 5% deficit target. Economy Minister Roland Lescure said he took note of the decision and saw it as recognition of the strength of the French economy. According to Reuters, S&P and Fitch already downgraded France in 2025, and France already borrows at a higher cost than some lower-rated countries, such as Italy.

For readers, the main point is this: the rating is unchanged, and no rules have changed along with it. But the news is a good reason to sort out which loan and savings terms are set in a contract or by the State, and which ones depend on the market.

A mortgage that is already signed

Service-public distinguishes two kinds of rate.

• A fixed rate stays the same for the whole life of the loan. It only changes if the borrower renegotiates with the bank (renégociation) or refinances with another lender (rachat de crédit). It is written into the contract, and rating decisions do not change it.
• A revisable rate (taux révisable) moves with the reference rate named in the contract, such as the euro-area interbank rate. The loan offer (offre de prêt) states which index is used and whether there is a limit on how far the rate can move. With a revisable rate, that section is worth reading before the next repayment schedule arrives.

If a loan is still ahead

Banks set the rates in their offers themselves. But the law sets several limits, and they are especially useful when rates are unsettled:

• Compare the TAEG, not just the interest rate. The TAEG (annual effective rate) reflects the full cost of the loan, interest and fees included.
• The ceiling is the taux de l'usure. An offer's TAEG cannot exceed it. There are several such ceilings, depending on the amount and the length of the loan.
• 10 calendar days to think it over. The period starts the day after the offer is received and cannot be shortened. The bank must keep the offer's terms open for at least 30 days.
• Borrower insurance. The bank can require it, but it cannot impose a particular insurer.

Livret A: the rate is fixed for six months

The State sets the Livret A rate by order (arrêté). It currently stands at 1.7% a year for the period from 1 August 2026 to 31 January 2027 (arrêté of 28 July 2026). The interest is exempt from both income tax and social contributions. An individual can deposit up to €22,950. Only one Livret A is allowed per person: holding a second one carries a fine of 2% of its balance. The service-public page lists no nationality or tax-residence condition for opening one.

What comes next

• 28–29 October: the ECB Governing Council holds its monetary policy meeting, followed by a press conference on the 29th.
• The 2027 budget has not been adopted yet. It is the very condition Moody's has tied its rating to.

This is a general overview of the rules, not personal advice. A specific loan contract is best reviewed with the bank or with the ADIL in your département, the local housing information agency that service-public points to.

Sources: Reuters via Boursorama, 24.10.2026; service-public.gouv.fr — "Je veux obtenir un crédit immobilier" (checked 05.04.2024) and "Livret A" (checked 01.08.2026); ECB Governing Council meeting calendar.