Fitch warns France A+ rating faces downgrade risk

Fitch Ratings has cautioned that France's A+ credit rating is under pressure from rising government debt, sluggish economic growth, and political instability. The agency expressed skepticism regarding the French government's capacity to stabilize public finances, despite a proposed 2027 budget targeting a deficit of 5% of GDP.

Fitch identified rising debt levels, higher borrowing costs, weak economic growth, and political fragmentation as primary risks that could hinder necessary spending cuts. The agency noted that a failure to reduce debt could result in a negative outlook for the rating. A significant further increase in debt could lead to a credit rating downgrade.

France's current outlook remains stable.