Fitch keeps France at A+ but turns outlook negative over debt rise

Fitch kept France’s sovereign credit rating at A+ but lowered its outlook from stable to negative, citing weak growth, deteriorating public finances, higher borrowing costs and political fragmentation. It projects public debt will rise from about 115.7% of GDP in 2025 to 124% in 2028, while the country’s economy has shown no growth so far this year and contracted in the third quarter. France is struggling to pass a 2027 budget intended to reduce the deficit, and protests over living costs and uncertainty ahead of next year’s presidential election could complicate efforts to agree on lasting fiscal measures. Bond yields have climbed sharply, adding to debt-service costs; Moody’s also maintained France’s rating with a negative outlook.