S&P Global lowered its rating – from AA- to A+ – comes after a period of political turmoil in France. President Emmanuel Macron has struggled to appoint a prime minister who can drive through a state budget in the national assembly, reports AFP.
Now, the current prime minister Sebastien Lecornu has backed down from a very unpopular proposal to raise the retirement age in the country in hopes of getting the budget through.
In September, the credit rating agency Fitch also lowered France's credit rating and in December last year, Moody's did the same thing.
France's finance minister Roland Lescure says the downgrade is a "wake-up call" and that it is "another cloud in an already fairly grey sky" when it comes to France's economic outlook.
