Credit rating agency Moody's announced on Saturday that it was cutting France's rating to "Aa3" from "Aa2" with a stable outlook, citing concerns over "political fragmentation." Traders have reacted negatively to the downgrade,

The action, which will put pressure on the nation’s borrowing costs, reflects doubt that a new government can mend the deteriorating financial situation.

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.

The yield on 10-year French debt rose to more than 3%, on the first trading day after the credit rating agency unexpectedly cut France's debt rating. View on euronews