Fitch cuts France outlook to negative, affirms A+ rating

Fitch Ratings revised France's outlook to negative from stable on Friday and affirmed the A+ rating, citing weaker growth, higher borrowing costs and a wider deficit since its August review, with debt seen reaching about 124 percent of GDP by 2028.

Why it matters: France now carries a negative outlook from both Fitch and Moody's, putting a downgrade of the euro area's second largest sovereign in play at Fitch's next review, due by the end of February 2027 at the latest.

Data as of Fitch rating action of October 30, 2026, as reported the same day by Reuters and Dow Jones Newswires; Fitch's own release was not retrieved in this run, so the action and its figures are carried from the two wires' reporting of it. Developing item.

Fitch Ratings revised France’s outlook to negative from stable on Friday, affirming the A+ long-term rating, and said the change reflects a deterioration since its August review: weaker growth, higher borrowing costs and a wider deficit, compounded by political fragmentation that is undermining the prospects for debt stabilisation. Fitch now sees France’s debt rising to around 124 percent of GDP by 2028, from 115.7 percent in 2025, with the deficit at 5.5 percent of GDP in 2027, and said the policy debate ahead of the presidential election has not materially strengthened its confidence in durable deficit reduction. The action lands on the day INSEE reported a 0.1 percent third quarter contraction for France and a week after Moody’s kept the sovereign at Aa3 with a negative outlook; Fitch said it expects to review the rating by the end of February 2027 at the latest, while the large, wealthy and diversified economy, strong institutions and euro area membership continue to support the rating itself.

Fitch cuts France outlook to negative, affirms A+ rating

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