Fitch revises France's outlook to negative; affirms at 'A+'
TLT•Fitch revised France's outlook to negative and affirmed its rating at 'A+', citing weaker growth, higher borrowing costs and a wider deficit.
1. Outlook revised
Fitch said France's negative outlook reflects deterioration since its August review, including weaker growth, higher borrowing costs and a wider deficit. It cited a highly fragmented political landscape that makes it difficult to agree on and implement a credible fiscal strategy.
2. Fiscal uncertainty
Fitch said prospects for sufficient, durable medium-term fiscal consolidation after the likely 2027 presidential and parliamentary elections are uncertain. It also said recent protests and limited fiscal space reduce the authorities' capacity to cushion the economy from a renewed energy shock. Fitch expects to review France's rating by the end of February 2027 at the latest.
