France's credit outlook splits rating agencies: Fitch turns negative, Moody’s stays stable, bond risk sees biggest drop
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- ✓Fitch revised France’s credit outlook to negative on Friday, citing fiscal worries and political fragmentation.
- ✓The agency said, "Weaker growth, renewed fiscal deterioration and higher yields have increased the challenge of delivering the necessary sustained fiscal consolidation." Meanwhile, Moody’s kept France’s rating steady, as bond risk saw its biggest drop.
Story at a Glance
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- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Credit ratings agency Fitch on Friday revised France's outlook to "negative" from "stable", warning that deteriorating fiscal conditions and political fragmentation are undermining debt stabilization prospects.
The agency pointed to weaker growth, higher borrowing costs and a wider deficit since its August review, compounded by a fractured political landscape that is making sustained fiscal consolidation harder to deliver.
Why Fitch downgraded France's outlook
Fitch predicted that the debt level for the European Union's second biggest economy would rise from nearly 115.7 percent of GDP in 2025 to 124 percent in 2028. In its last review in August, Fitch had forecast that France's debt would reach 122.7 percent of GDP in 2028.
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