This downgrade puts France’s rating on a par with that of Portugal, Spain, China, and Japan.<\/p>\n
The rating agency’s decision was explained by the consideration that “uncertainty over French public finances remains high,” and this “despite the presentation this week of the 2026 budget proposal.”<\/p>\n
Reacting to S&P’s second downgrade of France’s rating in a year and a half, French Economy Minister Roland Lescure said he had “taken note” of the decision.<\/p>\n
“The government confirms its determination to maintain the (budget) deficit target of 5.4% of GDP for 2025,” the minister added in a statement broadcast to AFP.<\/p>\n
According to S&P, if “this target of 5.4% of GDP in 2025 is achieved (\u2026) without significant additional measures to reduce the fiscal deficit, fiscal recovery over the forecast horizon will be slower than anticipated.”<\/p>\n
The agency forecasts that “gross public debt will reach 121% of GDP in 2028, after 112% at the end of 2024,” it continued in the statement announcing the new rating.<\/p>\n
“As a result, we have downgraded our unsolicited sovereign ratings on France from AA-\/A-1+ to A+\/A-1,” it detailed.<\/p>\n
The new rating is complemented by a stable outlook.<\/p>\n
This new rating downgrade comes as Moody’s is expected to make a decision on October 24th and follows a similar decision by Fitch, which lowered France’s rating to A+ a month ago, citing persistent instability and budgetary uncertainty.<\/p>\n
Financial rating agencies, such as these, rate the creditworthiness of states\u2014that is, their ability to repay their debts\u2014on a scale ranging from AAA, the highest rating, corresponding to the famous triple A, to D, which corresponds to default.<\/p>\n
Downgrades in the ratings assigned by these agencies are feared by States, as they may lead to an increase in the cost of their debts.<\/p>\n","protected":false},"excerpt":{"rendered":"This downgrade puts France’s rating on a par with that of Portugal, Spain, China, and Japan. The rating…\n","protected":false},"author":2,"featured_media":515912,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-515911","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115409855843384611","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/515911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=515911"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/515911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/515912"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=515911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=515911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=515911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}