France public debt, USA News: The rating agency Fitch Ratings has maintained the sovereign debt rating of France at A+ while downgrading its outlook from stable to negative on Friday.
This development comes as additional negative news for the French economy. On Friday morning, Insee announced that gross domestic product (GDP) declined by 0.1% during the third quarter. Later on Friday evening, American rating agency Fitch issued its updated perspective.
In an official statement, Fitch cited multiple factors behind the decision. Weakened growth, further fiscal deterioration, and higher yields have intensified the challenge of implementing sustained budget consolidation required to reverse France’s worsening debt trajectory.
Minister of Economy and Finances Roland Lescure responded in a statement by noting the decision, stating that it confirms the absolute necessity of adopting a responsible budget by the end of the year aimed at restoring public accounts and reducing the deficit to 5%. The government remains determined to pursue budget consolidation amid an uncertain international context to provide visibility to economic actors.
A week prior, Moody’s had unexpectedly refrained from taking any rating action on French debt, maintaining its assessment at Aa3 with a negative perspective.
