Fitch Maintains France A+ Rating Amid Deficit Warnings

Fitch Ratings maintained the credit rating of France at A+ with a stable outlook, avoiding a downgrade despite mounting concerns over the country's widening deficits and public debt. The agency warned that continued political fragmentation and a failure to make substantial progress on deficit reduction could lead to a negative outlook revision or a future downgrade.

Updated projections from the agency show a deterioration in fiscal balance, with expected deficits of 5.2% this year, 5.5% in 2027, and 5.2% in 2028. These figures are driven by weaker economic growth, increased defense spending, and higher debt servicing costs. This fiscal pressure coincides with domestic political gridlock in the National Assembly and the lead-up to the 2027 presidential election.

The French Ministry of Finance responded to the assessment by stating the government remains "fully mobilized" to manage the deficit and public debt in a responsible and balanced way.