FX.co ★ Fitch Cuts France's Credit Rating to A+

Fitch Ratings has lowered France's sovereign credit rating from AA- to A+, attributing the change to ongoing political unrest and increasing national debt. This adjustment follows closely on the heels of Former Prime Minister François Bayrou's resignation, which occurred after a parliamentary confidence vote rejected his proposed austerity budget. This new rating, which represents the lowest recorded by a major credit rating agency for France, has been assigned a stable outlook by Fitch. In response to the political shake-up, President Emmanuel Macron has appointed Sébastien Lecornu, a staunch conservative supporter, to establish a new government after the dismissal of centrist François Bayrou by legislators due to his controversial €44 billion (approximately USD 52 billion) budget austerity plan. Currently, Standard & Poor’s assigns France a credit rating of AA- but with a negative outlook, while Moody’s rates it at Aa3 with a stable outlook. DBRS Morningstar last reported France’s rating at AA (high), also with a negative outlook.