Overview

• Fitch lowered France’s long-term rating from AA- to A+, stating that elevated indebtedness reduces the country’s capacity to absorb shocks without further fiscal strain.
• The agency projects public debt will climb to about 121% of GDP by 2027, up from roughly 113% in 2024.
• Fitch says political instability, including three governments since the 2024 elections and a recent confidence-vote defeat, impedes meaningful budget repair.
• Outgoing economy minister Eric Lombard said he takes note of the decision, while new Prime Minister Sébastien Lecornu has begun cross-party consultations on a finance bill.
• Fitch judges it unlikely the deficit will fall below 3% of GDP by 2029, as French parties trade blame and the government seeks votes for a budget ahead of Moody’s and S&P reviews this fall.