S&P Keeps France's Sovereign Rating at A+ With Stable Outlook

Overview

• Standard & Poor’s left France’s sovereign rating at A+ with a stable outlook on May 29, 2026, matching recent action by Fitch and stopping short of the further downgrade markets feared.
• The government said it 'took note' of the decision and pledged to press on with deficit reduction and debt control as the key response to the rating firms' concerns.
• Official outturns showed a 2025 public deficit of 5.1% of GDP, a slightly better result than some forecasts and below S&P’s prior projection of 5.3%, which helped limit near-term pressure on the rating.
• Paris has put in place limited, targeted fuel support of about €1.2 billion and announced roughly €6 billion of planned savings split between the state and social security, while higher borrowing costs have already raised annual debt service by about €3.6 billion.
• The rating pause is conditional rather than permanent because political fragmentation, the presidential cycle and falling growth prospects raise the risk of a deficit rebound in 2027 and make autumn agency reviews decisive.