French stocks were sliding on Monday after Moody's downgraded the country's debt. The ratings agency slashed its score to Aa3 from Aa2, meaning it thinks there’s a slightly higher probability that the

Credit ratings agency Moody's unexpectedly downgraded France's rating on Friday, adding pressure on the country's new prime minister to corral divided lawmakers into backing his efforts to rein in the strained public finances.

Ratings agency Moody's downgraded France's credit rating from 'Aa2' to 'Aa3', a shift that reflects growing concerns over the country’s economic outlook amidst political instability. The rebuke just came hours after President Emmanuel Macron appointed François Bayrou as the new prime minister,

The spread between French and German benchmark bond yields widened, signaling investor unease about France's public finances. France has endured a monthslong political crisis, driving up the premium investors demand for holding French bonds.

French bonds and stocks lagged peers after Moody’s Ratings cut the country’s credit rating, putting more pressure on officials after far-right leader Marine Le Pen toppled the previous prime minister over a budget dispute.