France: S&P Lowers France’s Rating, Outlook Stable.

S&P Global downgraded France’s ratings to ‘A+’ from ‘AA-’, citing concerns that budgetary consolidation will proceed more slowly than expected without significant additional deficit-reducing measures. The agency noted that policy uncertainty could weigh on investment, private consumption, and overall economic growth. Newly appointed Prime Minister Sebastien Lecornu survived two no-confidence votes in parliament, giving his government a temporary reprieve and the opportunity to deliver a 2026 budget. S&P highlighted that passing a budget by year-end would provide greater clarity on managing France’s rising debt, projected to reach 121% of GDP by 2028 compared with 112% at the end of 2024. Despite this, the agency said uncertainty around public finances remains high ahead of the 2027 presidential elections. Balancing these risks against France’s credit strengths, S&P revised the outlook to ‘stable’ from ‘negative’.