The scope qualification agency confirmed the French debt note on Friday, after having degraded it almost a year from AA to AA-but reviewed its perspective as stable to negative, according to a press release. Scope ratings mainly advanced the budgetary situation and the growing political instability to justify their decision.
At the same time, Spain received congratulations from two qualification agencies. Two weeks after having seen his note raised by S&P, Madrid now gets an A3 in Moody’s and one A in Fitch, the highest level since 2012.
“Risk of Legislative Lifen”
On the side of France, political fragmentation illustrated by parliamentary debates about the budget strengthens a “risk of legislative point”, and the absence of commitment in reducing the deficit and the relationship between public debt and the Gross Domestic Product (GDP) could threaten the French note with a new degradation, they say the scope qualifications.
According to its forecasts, the deficit reached 5.6% of GDP in 2025, against the expected 5.4%, while French public debt would increase to 116.5% of GDP in 2025 and 125% of GDP by 2030 “in the absence of new clashes.” It would be “one of the strongest increases” among countries that share the same qualification, specify the agency.
France’s public debt inflated even more in the second quarter, reaching 115.6% of GDP and an absolute value record with more than 3,400 billion euros, while the prime minister, Sébastien Lecornu, always tries to find Martingale to complete a budget of 2026 in a social climate in time. The new Matignon tenant said he was pointing to a public deficit of 4.7% of GDP in 2026 and even 3% in 2029 in an interview with El Parisino.
The Spanish miracle continues
France is third on the podium of countries in the most indebted euro zone, behind Greece and Italy, and first in relation to the scope of its deficit. In September, Fitch’s qualification agency had degraded France’s sovereign note also cite its political instability and its budget fragility. The agency saw the debt rise to 121% of GDP in 2027.
Spain, on the contrary, is doing well. The deficit was recovered below 3% in 2024 and its debt fell to 101.8% of GDP. The GDP that also increased by 3.5% last year, more than expected and much better than in France (1.2%). For this year, the government has reviewed its growth forecast and now 2.7%tables.
“The three qualifications of the qualification in just two weeks are testimatic of the confidence in our growth and the good prospects of our economy,” he welcomed the Minister of the Economy, Carlos Body, in a video statement. “This will attract many more investors to our debt emissions.”
Source: BFM TV
