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