Overview
- The sovereign rating dropped one notch to A+/A-1 from AA-/A-1+ with a stable outlook.
- S&P brought the decision forward from a planned November 28 review, citing parliamentary turbulence and recent no-confidence votes that the government survived.
- The agency pointed to the suspension of the 2023 pension law until after the 2027 election as a key source of uncertainty over public finances.
- Its baseline projects 0.7% growth this year, a muted recovery in 2026, and gross general government debt rising toward about 121% of GDP by 2028 without additional deficit cuts.
- S&P warned that higher sovereign borrowing costs could pass through to broader financing costs across the French economy.