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France Faces Credit Downgrade Risk After Vote Loss

9/13/2025

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France's Prime Minister Sebastien Lecornu risks a credit rating downgrade from Fitch following a confidence vote loss by his predecessor.
Fitch rates France's debt at "AA-", but a downgrade to "A" would indicate higher vulnerability.
French government bond yields have risen to 3.47%, increasing debt servicing costs, which former PM Bayrou called "unbearable."
Last year's budget deficit was 5.8% of GDP, with debt at 113%, surpassing eurozone limits.
Economists suggest Fitch may postpone a downgrade to give Lecornu time to establish a competent government.

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Story summary

France's Prime Minister Sebastien Lecornu risks a credit rating downgrade from Fitch following a confidence vote loss by his predecessor.
Fitch rates France's debt at "AA-", but a downgrade to "A" would indicate higher vulnerability.
French government bond yields have risen to 3.47%, increasing debt servicing costs, which former PM Bayrou called "unbearable."
Last year's budget deficit was 5.8% of GDP, with debt at 113%, surpassing eurozone limits.
Economists suggest Fitch may postpone a downgrade to give Lecornu time to establish a competent government.