France's Credit Rating Maintained at AA- by S&P, Outlook Downgraded to Negative

The revised outlook reflects concerns over rising public debt, limited political support for reforms, and uncertain economic growth projections.

Standard & Poor's (S&P) has kept France's credit rating at AA-, but downgraded its outlook from stable to negative, signaling potential future rating cuts.
The decision highlights challenges in addressing France's growing public debt and the political fragmentation hampering fiscal reforms.
France's 2025 budget aims to reduce the deficit to 5.4% of GDP, but relies on temporary measures and faces skepticism about long-term fiscal strategy.
S&P projects economic growth of less than 1% for France in 2025, raising concerns about the feasibility of meeting deficit reduction targets.
Other major credit agencies, including Fitch and Moody's, have also expressed concerns about France's fiscal trajectory, with Fitch set to reevaluate its rating on March 14.