Fitch Lowers France's Outlook to Negative From Stable

By Stephen Nakrosis

Fitch Ratings said it was lowering its outlook on France's credit rating to negative from Stable, while affirming the country's A+ ratings.

The move comes as France faces economic and social pressure over its debt and growing borrowing costs. In recent weeks, hundreds of thousands of people have taken to the streets of Paris and other French cities, with some protesters resorting to vandalism and violence.

Fitch said the negative outlook reflects a deterioration since its August review, and cited weaker growth, higher borrowing costs and a wider deficit. These factors are worsening debt dynamics from an already weak starting point, Fitch added.

Yields on France's government bonds have also risen since the last review, Fitch said. The agency said it now forecasts interest payments will increase to 3.3% of GDP in 2028 from 2.5% of GDP in 2025. Fitch also sees France's deficit at 5.5% of GDP in 2027, which it said reflects a weaker growth assessment and the risk of concessions during the budget process.

The country's A+ rating is supported by a large, wealthy and diversified economy, strong institutions, euro area membership and a resilient banking sector, Fitch added.

The next scheduled review date for France's rating hasn't yet been set, Fitch said, but added it expects to review the rating by end-February 2027 at the latest.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 30, 2026 17:57 ET (21:57 GMT)