Moody’s Issues France Credit Rating Warning Over Snap Elections 

Activists and demonstrators take part in an “antifascist rally" following the European election results, in Toulouse, France, on June 10, 2024. (AFP)
Activists and demonstrators take part in an “antifascist rally" following the European election results, in Toulouse, France, on June 10, 2024. (AFP)
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Moody’s Issues France Credit Rating Warning Over Snap Elections 

Activists and demonstrators take part in an “antifascist rally" following the European election results, in Toulouse, France, on June 10, 2024. (AFP)
Activists and demonstrators take part in an “antifascist rally" following the European election results, in Toulouse, France, on June 10, 2024. (AFP)

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.

"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.

President Emmanuel Macron called a shock snap legislative election on Monday following a bruising loss in the weekend's European Parliament vote to the far-right party of Marine Le Pen.

Macron's unexpected decision, which amounts to a roll of the dice on his political future, could hand major political power to the far-right after years on the sidelines, and neuter his presidency three years before it ends.

The legislative vote will take place on June 30, less than a month before the start of the Paris Olympics, with a second round on July.

Moody's highlighted that the country's debt burden, which is already over 110% of GDP, is higher than other similarly rated countries and has seen a near-continuous increase since the 1970s due to consistently large structural budget deficits.

S&P Global downgraded its French rating earlier this month due to the same concerns, and Moody's signaled what would drive it to follow suit.

"The outlook, and ultimately the ratings, could move to negative if we were to conclude that the deterioration in debt affordability – which we measure as interest payments relative to revenue and GDP – will be significantly larger in France than in its rating peers," it said.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.