Credit rating agency S&P Global has downgraded France’s credit rating from AA- to A+.
The agency cited lingering uncertainty over France’s public finances, despite a draft budget for 2026 being submitted to parliament earlier this week.
France currently faces a budget deficit exceeding 5% of its GDP. Earlier this week, Prime Minister Sébastien Lecornu postponed a controversial pension reform plan until 2027.
S&P warned that without significant additional measures to reduce the budget deficit, fiscal consolidation is likely to proceed slower than previously anticipated.
The downgrade may make it harder for the French government to borrow money at favourable interest rates. Investors are more inclined to lend to countries with higher ratings, as this reduces the risk of losing their investment.
