Fitch Maintains France's AA- Credit Rating with Negative Outlook

The agency cites high public debt, weak fiscal reforms, and slow economic growth as key challenges to France's financial stability.

Fitch Ratings has upheld France's AA- credit rating but continues to assign a negative outlook due to ongoing fiscal concerns.
The agency highlights France's high public debt, projected at 113.7% of GDP, and persistent budget deficits as significant weaknesses.
France's 2025 budget aims to reduce the deficit to 5.4% of GDP, but Fitch notes this is less ambitious than initial government plans.
Economic growth forecasts for 2025 have been revised downward, with Fitch now predicting 0.6% growth compared to earlier estimates of 0.9%.
Political fragmentation and new spending commitments, such as increased defense funding, are seen as obstacles to sustainable fiscal reform.