Overview
- Fitch kept France’s sovereign rating at A+ with a stable outlook, highlighting strong income and governance metrics but weighing high and rising public debt, soft growth prospects, and political constraints.
- The agency said potential effects from the war in the Middle East, including disruption near the Strait of Hormuz, are too uncertain to include at this stage.
- France’s 2026 budget, passed as a political compromise, slows consolidation with a deficit set at 5.0% of GDP after 5.4% in 2025 and includes the suspension of the pensions reform.
- Public debt stood above 117% of GDP in Q3 2025 and interest costs rose to about €65 billion in 2025, with Fitch warning of further negative action if the debt ratio increases sustainably.
- Economy Minister Roland Lescure welcomed the decision and pledged continued deficit and debt reduction, while markets now look to Moody’s (Aa3, negative outlook) on April 10 and S&P on May 29.