After the Moody’s and Fitch WarningsThe rating agency S&P decided this Friday, November 29, to maintain the rating it grants to French debt at “AA-”, as well as its outlook at stable.
“Despite political uncertainty, we expect France to respect – belatedly – the European budget framework and progressively consolidate its public finances in the medium term,” the US agency said in a statement.
“Crucial moment”
“The agency justifies its decision by the fact that it is confident in the government’s ability to approve its budget, which will bring the deficit to around 5% in 2025 and below 3% in 2029,” it continues.
“Our partners, international observers, see that we are going in the right direction. They recognize the solid economic fundamentals of our country and the need to restore public finances,” emphasizes the Bercy tenant.
And warn that “the absence of a budget and political instability would cause a sudden acceleration in the financing costs of French debt and would destabilize business investment and undermine growth.”
S&P Global Ratings’ decision comes as the government multiply commitments to try to escape a motion of censure that could take place next week on the Social Security budget and, according to the executive, plunge France into an economic and financial “storm.”
Source: BFM TV
