the Standard & Poor’s agency lowers the French rating from “AA” to “AA-“

Standard and Poor’s has given its verdict. The rating agency lowered its assessment on Friday May 31 regarding the evolution of French public debt, whose rating went from “AA” to “AA-“. “Contrary to our previous forecasts, we estimate that France’s public debt will increase to around 112% of GDP by 2027, compared to around 109% in 2023.S&P said in a press release.

“Even though we believe that the resumption of economic growth and the recently implemented economic and budgetary reforms will allow France to reduce its budget deficit, we now expect it to remain above 3% of GDP in 2027”continues S&P, which nevertheless judges that “the outlook is stable”. End of April, the other two agencies (Moody’s and Fitch) had not changed their rating for France.

Reacting in the columns of Le Parisien on Friday evening to the deterioration of the French rating at S&P, the Minister of the Economy assured that‘”there will be no impact on the daily lives of the French”. For Bruno Le Maire, this rating is “absolutely not” a sign of failure, but rather a call to continue its public savings policy. “I take note of this decision. It does not change anything in my determination to restore public finances. We have started to do it, we continue”he assured.

The Minister of the Economy mainly explains this rating by the aid policies of the French State during the Covid-19 crisis. “We spent to protect well. These essential expenses obviously increased the debt”he argued, also ensuring that the French debt still finds “easily taken on the markets”.