LONDON: France’s snap parliamentary elections are negative for the country’s credit score, ratings agency Moody’s has warned.

“This snap election increases risks to fiscal consolidation,” Moody’s said in a statement late on Monday, describing it as “credit negative” for the country’s Aa2 rating, which is one notch above Fitch and S&P Global’s equivalent score.

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“Potential political instability is a credit risk given the challenging fiscal picture the next government will inherit,” it added, saying the currently “stable” outlook on France’s rating could be cut to “negative” if its debt metrics worsened further.

“A weakening commitment to fiscal consolidation would also increase downward credit pressures,” Moody’s said.