Fitch Revises France's Outlook to Negative
Saturday, 05 16 2020, Category: Rating, Country: France
Fitch Ratings has revised the Outlook on France's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the IDR at 'AA'.
The revision of the Outlook reflects the substantial worsening in public finances and economic activity expected this year due to the COVID-19 pandemic. The combination of much reduced economic activity due to containment measures introduced from March and government policies to support the economy in the period of enforced reduced activity will sharply increase government borrowing and indebtedness. This deterioration of France's public finance metrics will happen in the context of already high debt levels in comparison with rating peers, limited progress in fiscal consolidation since the global financial crisis, and moderate real economic growth.