S&P downgrades French credit rating in blow to Macron
France's credit score on Friday citing a deterioration in the country's budgetary position, a blow to Emmanuel Macron's government days before EU parliamentary elections.
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In a statement, the American credit assessor justified its decision to drop France's long-term sovereign debt rating from «AA» to «AA-» on concerns over lower-than-expected growth.
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It warned that «political fragmentation» would make it difficult for the government to implement planned reforms to balance public finances and forecast the budget deficit would remain above the targeted three percent of GDP in 2027.
Also Read: French deficit worsens to 'very rare' level
The S&P's first downgrade of France since 2013 puts the EU's second-largest economy on par with the Czech Republic and Estonia but above Spain and Italy.
The announcement will sting for Macron, who has staked a reputation as an economic reformer capable of restoring France's accounts after low growth and high spending.
The risk of a ratings downgrade had been looming for several quarters, with the previous «AA» assessment given a «negative outlook».
The surprise slippage in the public deficit for 2023 to 5.5 percent of Gross Domestic Product (GDP) instead of the expected 4.9 percent did not play in the government's favour.
Also Read: French economy grows 0.9% in 2023, stagnant in second half
France's general government debt will increase to about 112
