S&P Global Ratings downgraded France’s credit rating to “A+” on Friday, October 17, from “AA-” previously, estimating that “despite the presentation this week of the draft 2026 budget, uncertainty over French public finances remains high.”
The agency maintains a stable outlook but believes that without additional measures to reduce the deficit, the pace of consolidation could be slower than expected. S&P forecasts general government gross debt to reach 121.00% of GDP in 2028 and high deficits over the next three years.
The agency underlines that political uncertainty could weigh on the French economy by slowing investment, private consumption and growth, despite the presentation of the draft budget for 2026 to Parliament.
The government determined to “meet the 2025 deficit target”
In a statement, the Minister of Economy and Finance, Roland Lescure, “takes note” of S&P’s decision.
“This is a key step that will allow us to respect France’s commitment to reduce the public deficit below 3% of GDP in 2029,” adds the minister.
Source: BFM TV
