Fitch Ratings lowered France's sovereign credit outlook to negative from stable, citing a deterioration in the country's fiscal and economic conditions since its August review.
The agency pointed to three main factors driving the change: weaker growth prospects, higher borrowing costs and a wider fiscal deficit. Fitch noted that these pressures have intensified over recent months, weighing on France's medium-term fiscal position.
The shift in outlook does not immediately affect France's long-term foreign currency issuer default rating, which remains at AA. However, the negative outlook indicates a higher probability of a downgrade within the next two years if current trends persist.
Fitch's decision reflects broader concerns about France's ability to rein in its budget shortfall while sustaining economic momentum, amid rising public debt levels and challenging European growth dynamics.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing