Fitch lowers France’s outlook to negative while keeping its A+ rating

Politics · First reported 31 Oct, 00:33 · Updated 09:12

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Fitch kept France’s sovereign debt rating at A+ but changed its outlook from stable to negative, citing weaker growth, higher borrowing costs and a larger deficit. The French government says it aims to pass a 2027 budget to reduce the deficit to 5%, but parliament’s lack of a majority makes passage uncertain.

Fitch kept France’s rating at A+ and lowered its outlook from stable to negative.
France’s GDP fell 0.1% in the third quarter, following no growth in the second quarter and a 0.2% contraction in the first.
Economy and Finance Minister Roland Lescure said the government wants a budget adopted by year-end that reduces the deficit to 5%.
The government lacks a parliamentary majority; Fitch expects it may use available constitutional mechanisms to get a budget adopted.
Le Monde’s report says Fitch projected France’s debt would reach 124% of GDP in 2028.

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Key facts

Fitch rating: A+ retained; outlook changed from stable to negative.
GDP: Down 0.1% in the third quarter; flat in the second and down 0.2% in the first.
Government deficit target: 5%, according to Finance Minister Roland Lescure’s stated budget goal.
Debt projection: Fitch forecast debt at 124% of GDP in 2028.