Fitch Ratings downgraded France’s credit rating on Friday, as French president Emmanuel Macron appointed a new prime minister amid ongoing political and economic turmoil.
France’s rating was lowered from AA- to A+, its lowest score since the US-based agency began assessing the financial stability of foreign borrowers.
According to Fitch, France’s debt is expected to continue rising until 2027 unless concrete measures are taken to contain the crisis.
The downgrade comes after François Bayrou was forced to resign as prime minister, having lost a confidence vote in the Assemblée nationale while attempting to pass a budget containing significant spending cuts. He has been replaced by Sébastien Lecornu, who now faces the daunting task of preparing the 2026 budget.
Fitch said in a statement: “The government’s defeat in a confidence vote illustrates the increased fragmentation and polarisation of domestic politics. This instability weakens the political system’s capacity to deliver substantial fiscal consolidation.”
