Overview
- S&P lowered France’s unsolicited long- and short-term ratings to A+/A-1 and set a stable outlook, warning budget consolidation will be slower without additional measures.
- The agency cited elevated uncertainty over public finances and severe political fragmentation, and it projects gross public debt near 121% of GDP by 2028 from about 112% at end-2024.
- S&P advanced its review, acting shortly after the government survived censure motions and presented a 2026 budget plan targeting a lower deficit.
- Economy Minister Roland Lescure said he took note of the decision, reaffirmed deficit goals of 5.4% in 2025 and 4.7% in 2026, and urged Parliament to approve the 2026 budget.
- The move follows Fitch’s September cut to A+, with markets watching potential borrowing-cost pressures and a Moody’s decision due on October 24.