"A cut to France's credit rating by S&P Global is "a wake-up call" for the country to pass a 2026 budget, Economy Minister Roland Lescure said Saturday. "This is an additional cloud to a weather report that is already quite grey" in terms of France's economic outlook, he told Franceinfo radio. France, with one of the largest debt piles among European Union countries, is in the midst of a political impasse over the budget, which has so far failed to pass through a divided parliament."
"S&P Global on Friday became the third ratings agency in less than a year to push down its evaluation of France's credit status, lowering it from AA- to A+. It follows Fitch Ratings doing the same less than a week earlier, and Moody's in December last year lowering it from Aa2 to Aa3. S&P said its decision came as it judged that "uncertainty on France's government finances remains elevated"."
S&P Global downgraded France's credit rating from AA- to A+, marking the third cut in under a year after Moody's and Fitch. Economy Minister Roland Lescure called the downgrade a wake-up call and warned it added to an already grey economic outlook. France faces a political impasse as a divided parliament has failed to pass the 2026 budget. Prime Minister Sebastien Lecornu reversed a contested pension reform to secure lawmaker support and survived two no-confidence votes. The government aims to reduce the public deficit from 5.4% of GDP to 4.7% by the end of next year. France's public debt is nearly twice the EU reference of 60% of GDP, ranking third-highest in the bloc.
Read at The Local France
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