France's credit outlook splits rating agencies: Fitch turns negative, Moody’s stays stable, bond risk sees biggest drop
Fitch warned that France’s debt outlook is worsening, projecting debt to reach 124% of GDP by 2028 amid weak growth. Moody’s kept its Aa3 rating unchanged. Despite a recent rally that narrowed the French-German bond spread, fiscal concerns and budget challenges persist.
France's credit outlook was revised to negative by credit rating agency Fitch, while Moody's maintained a stable outlook. Fitch cited deteriorating fiscal conditions and political fragmentation as undermining debt stabilization prospects. The agency predicted that France's debt level would increase from nearly 115.7% of GDP in 2025 to 124% in 2028.
Fitch warned that weakened growth, higher borrowing costs, and a wider deficit make sustained fiscal consolidation difficult. The political landscape, with far-right and far-left candidates leading polls, makes it hard to agree on a credible fiscal strategy. Moody's, on the other hand, kept France's rating steady at Aa3 with a negative outlook.
French bond risk saw the biggest drop since the 2020 pandemic, with the extra yield investors demand for French bonds falling by 13 basis points to 154 basis points.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
