S&P Global Ratings Downgrades France's Credit Rating
S&P Global Ratings downgraded France's credit rating on Friday to 'A+/A-1' from 'AA-/A-1+', citing increased risks to budget consolidation. The agency maintains a stable outlook but estimates that, without additional measures to reduce the deficit, the pace of consolidation could be slower than expected. S&P anticipates the gross debt of public administrations reaching 121.00% of GDP by 2028 and high deficits over the next three years. The agency highlights that political uncertainty could weigh on the French economy by hindering investment, private consumption, and growth, despite the presentation of the 2026 budget bill to Parliament.
