{"id":5271,"date":"2025-10-18T08:02:30","date_gmt":"2025-10-18T08:02:30","guid":{"rendered":"http:\/\/www.globaltalenthq.com\/?p=5271"},"modified":"2025-10-20T18:39:04","modified_gmt":"2025-10-20T18:39:04","slug":"sp-downgrades-frances-credit-rating","status":"publish","type":"post","link":"http:\/\/www.globaltalenthq.com\/index.php\/2025\/10\/18\/sp-downgrades-frances-credit-rating\/","title":{"rendered":"S&P downgrades France\u2019s credit rating"},"content":{"rendered":"

The agency has flagged governance challenges and ballooning liabilities in its latest sovereign review<\/strong><\/p>\n

S&P Global has downgraded France’s long-term credit rating from AA- to A+, warning that rising debt and political tensions threaten the government’s ability to reduce its budget deficit. The agency also revised France’s outlook to ‘stable’ on Friday. <\/p>\n

S&P expects France’s government debt to reach 121% of GDP in 2028, compared with 112% at the end of last year, the agency said. The country has struggled to rein in spending while dealing with political turbulence. Prime Minister Sebastien Lecornu recently survived two no-confidence votes in parliament after suspending a contested pension reform package. <\/p>\n

S&P warned that uncertainty surrounding France’s public finances remains high, especially ahead of the 2027 presidential election. The agency cited the government’s decision to suspend the 2023 pension reform law as a sign of political fragility. It also projected economic growth of 0.7% in 2025, with only a muted recovery expected in 2026. S&P added that risks to the outlook remain significant, particularly if rising government borrowing costs spill over into broader financing conditions in the economy.<\/p>\n

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France leading EU drive to remove messaging privacy \u2013 Telegram founder<\/a><\/figcaption><\/figure>\n<\/blockquote>\n

In reaction to the downgrade, Finance Minister Roland Lescure said it is now “the collective responsibility of the government and parliament”<\/em> to pass a budget by the end of the year, ensuring that the deficit is on a path to the EU ceiling of 3% of GDP. S&P said France will likely meet its 2025 deficit target of 5.4% of GDP, but warned that “in the absence of significant additional budget deficit-reducing measures,”<\/em> the pace of consolidation will be slower than previously projected. The agency added that France’s “policy uncertainty”<\/em> and a weak record of delivering reforms further weighed on its decision. <\/p>\n

This is not the first sign of trouble for France’s creditworthiness. Earlier this year, S&P lowered the country’s outlook from ‘stable’ to ‘negative’ due to weak public finances. Last month, Fitch also cut France’s rating from AA- to A+, citing similar concerns about debt and the lack of a credible fiscal roadmap. The downgrade could increase France’s borrowing costs. It could also trigger forced bond sales by institutional investors limited to holding high-grade sovereign debt.<\/p>\n","protected":false},"excerpt":{"rendered":"

The agency has flagged governance challenges and ballooning liabilities in its latest sovereign review S&P Global has downgraded France’s long-term credit rating from AA- to A+, warning that rising debt and political tensions threaten the government’s ability to reduce its budget deficit. The agency also revised France’s outlook to ‘stable’…<\/p>\n

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