Fitch Ratings on Friday revised France's outlook to negative from stable, citing deteriorating fiscal conditions and political fragmentation. The agency warned that weaker growth, higher borrowing costs, and a wider deficit are undermining debt stabilization prospects for the euro zone's second-largest economy.
The negative outlook from Fitch heightens the risk of a future downgrade for France, potentially increasing its borrowing costs and impacting its debt outlook. This comes as the country faces political challenges in implementing deficit-reduction measures.
Fitch Ratings revised France's outlook to negative from stable on Friday, citing concerns over the country's worsening debt dynamics and fiscal trajectory. The agency pointed to weaker economic growth, rising borrowing costs, and a fractured political landscape that hinders sustained fiscal consolidation. Fitch now projects France's debt-to-GDP ratio to increase to approximately 124% by 2028, up from an estimated 115.7% in 2025. This action follows Moody's decision to maintain France's rating at 'Aa3' with a negative outlook.
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