France outlook cut to negative by Fitch on debt concerns

Fitch kept France's credit rating at A+ on Friday but cut its outlook from stable to negative, citing growing concern over the cost of servicing the country's debt.

The ratings agency forecast that debt in the European Union's second biggest economy would rise from nearly 115.7% of GDP in 2025 to 124% in 2028. Fitch's previous review in August had forecast debt reaching 122.7% of GDP in 2028.

Fitch said weaker growth, renewed fiscal deterioration and higher yields had made it harder for France to deliver the sustained fiscal consolidation needed to stabilise its debt path.

The agency also said prospects for debt reduction after France's April-May 2027 presidential election were uncertain. It said political divisions, with far-right and far-left candidates leading opinion poll surveys, would make it difficult to agree a credible fiscal strategy.

The assessment came after the INSEE national statistics agency reported Friday that France's economy had not grown so far this year and contracted from July to September.

The French government is also trying to pass a 2027 budget aimed at reducing spending. Finance Minister Roland Lescure warned in a radio interview: "If we fail to achieve the turnaround outlined in the budget, we are headed straight for a wall."