Fitch downgrades France's credit rating to A+ amid political turmoil

Fitch Ratings has downgraded France's credit rating from AA- to A+, the agency said on Friday, likely raising borrowing costs for French sovereign debt.

Fitch cited France's high and rising public debt and the limited prospects for economic reforms due to domestic political polarization and instability. The agency noted that France has seen three different governments since mid-2024, highlighting the volatility.

On Monday, Prime Minister Francois Bayrou lost a parliamentary confidence vote after less than nine months in office, stepping down as head of the minority government.

France, the second-largest eurozone economy, now has the third-highest debt ratio in the EU at 114%, after Greece and Italy. The country's budget deficit recently reached 5.8%, well above the EU limit of 3% of economic output.

The EU launched a deficit procedure against France in July 2024.