Overview

• S&P Global Ratings lowered France’s long-term rating from AA- to A+ and set a stable outlook after bringing its decision forward.
• The agency cited elevated uncertainty over public finances and projected gross public debt around 121% of GDP by 2028 without stronger deficit measures.
• S&P pointed to the most severe political instability since 1958, referencing failed censure bids and questioning the path to a sub‑3% deficit by 2029.
• Economy Minister Roland Lescure said the government takes note of the downgrade, reaffirmed a 5.4% deficit goal for 2025 and a 4.7% target for 2026, and urged Parliament to adopt the budget this year.
• Analysts warned the move could raise France’s borrowing costs, with interest payments near €55 billion in 2025, while markets and Moody’s Oct. 24 review remain key watchpoints.