France Retains AA- Credit Rating as Fitch Warns of Persistent Fiscal Risks

The agency maintains a negative outlook, citing high debt levels, budget deficits, and political challenges despite France's economic strengths.

Fitch Ratings has upheld France's credit rating at AA- but maintained a negative outlook due to ongoing fiscal vulnerabilities.
France's public debt has reached 113.7% of GDP, with a projected increase to over 120% by 2028, raising concerns about financial sustainability.
The French government has committed to reducing its budget deficit, which stood at 6% of GDP in 2024, but Fitch questions the feasibility of achieving medium-term fiscal consolidation.
Economic growth forecasts for 2025 have been revised downward to 0.6%, further straining efforts to stabilize public finances.
Increased European defense spending, partly driven by geopolitical tensions, offers some economic benefits but adds pressure on France's budgetary trajectory.