Fitch Ratings downgraded France"s sovereign credit score to A+ on Friday, marking the lowest level in the country"s history. This decision strips the euro zone"s second-largest economy of its previous AA- status as it confronts a political crisis and soaring national debt.
The downgrade adds pressure to newly appointed Prime Minister Sébastien Lecornu, who is in the early stages of forming a cabinet and drafting a 2026 budget that must navigate a deeply divided parliament. The timing of this announcement, just days after Lecornu took office, raises questions about his ability to stabilize the economy.
France"s financial struggles have been exacerbated by ongoing political instability, which has hindered effective governance and economic reforms. As reported earlier, the country has seen increasing public discontent, making it challenging for the government to implement measures that could restore confidence among investors.
This downgrade could have significant repercussions for France, affecting borrowing costs and investor sentiment. The government now faces the urgent task of crafting policies that can address the growing fiscal challenges while also appeasing a fragmented political landscape. For more on related developments, see our previous reports on Fitch"s downgrade of France"s credit rating.
