LONDON, Jan 7 Reuters There is a 3040 chance that France will see further negative credit rating moves this year unless the government can finally find a way to rein in its spending, analysts at JPMorgan have warned.

Emmanuel Macron39;s government suffered a series of downgrades or outlook cuts last year as political upheaval, including four different prime ministers over the twelve months, compounded deteriorating finances.

The downgrades left France39;s rating at its lowest on record at AA, or Aa3 on Moody39;s equivalent scale. Fitch, which is due to review the country again in midMarch, has its rating on a 39;negative outlook39; effectively a downgrade warning.

We see decent risks 3040 of further negative rating actions in France if the government proves unable to deliver a credible fiscal consolidation plan over the medium term, JPMorgan said in a note published late on Monday, referring to either a full downgrade or an outlook cut.

Spending cuts have long proved an anathema in Paris. Michel Barnier39;s government was toppled in December after leftwing and farright lawmakers opposed his 60 billion euro 62.43 billion belttightening push to rein in France39;s hefty fiscal deficit.

Credit ratings matter because they gauge a government39;s creditworthiness and often drive how much it has to pay to borrow in the international capital markets.

France39;s main proxy of that cost the yield on its benchmark government bonds is now at its highest in nearly six months…