Moody's says France AAA but reviewing outlook It warned that a rise in the borrowing rate on French debt bonds and slowing growth could have a negative effect on France's rating. Mr Sarkozy has pushed through two austerity packages, saying that they were necessary to defend France's top rating. But he has promised there will be no further austerity packages this year. European stock markets stabilised Monday after opening slightly down but the true test of the effect of France's humiliating downgrade will come on Thursday, when it conducts its first large-scale bond auction as an S&P AA+ rated economy.