France's Credit Rating at Risk

Fitch Ratings has set negative outlook on France's credit rating. The newly appointed Prime Minister Michel Barnier's budget austerity measures for 2025 do not impress the credit rating agencies much.

» Published:

France's Credit Rating at Risk
Photo: Francois Mori AP/TT

Share this article

Fitch downgraded France's credit rating to AA-minus from AA as recently as April last year.

The state financial risks have increased since we downgraded the rating, Fitch notes when motivating the negative outlook for the rating, which means that they may soon lower the rating again.

A lower credit rating implies that Fitch sees greater risks with French government bonds and typically leads to higher interest rates for the affected state.

According to Fitch, France is facing a period of increased budget deficits and growing debts, which are expected to push up the national debt to 118.5 percent of GDP by 2028.

Barnier's minority government presented a budget with cuts and tax increases equivalent to 60 billion euros on Thursday. The goal is to reduce the deficit to 5 percent of GDP by 2025, from this year's estimated 6.1 percent.

The previous government, which was forced out after the French election last summer, had aimed for a deficit of 4.4 percent this year.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Fed Lowers Interest Rate by 0.25 Points to 4.00–4.25 Percent

Fed Lowers Interest Rate by 0.25 Points to 4.00–4.25 Percent

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Avanza Introduces Digital Trading on London Stock Exchange

Avanza Introduces Digital Trading on London Stock Exchange

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Swedish Inflation Expectations Rise Slightly in Latest Survey

Swedish Inflation Expectations Rise Slightly in Latest Survey

Sweden's Unemployment Rate Stays High in August

Sweden's Unemployment Rate Stays High in August

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Verisure Returns to Stockholm Stock Exchange with Major Listing

Verisure Returns to Stockholm Stock Exchange with Major Listing

Oracle and Partners to Acquire TikTok's US Operations

Oracle and Partners to Acquire TikTok's US Operations

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

US Stock Market Sees Slight Decline Amid Retail Sales Data

US Stock Market Sees Slight Decline Amid Retail Sales Data

Trump Extends TikTok Deal Deadline to December 16

Trump Extends TikTok Deal Deadline to December 16

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Swedish Households Shift from Borrowing to Diverse Savings Strategies

Swedish Households Shift from Borrowing to Diverse Savings Strategies