Rating agency S&P Global maintains France’s rating at “AA”, a “positive signal” for Bruno Le Maire

The decision was eagerly awaited. The American rating agency S&P Global decided on Friday June 2 to finally maintain France’s rating at “AA”. “This is mainly due to the revision of the government’s fiscal consolidation strategy”, writes the rating agency, citing as positive facts the scheduled end of energy aid and the recent pension reform. The “AA” rating is among the highest rating categories, signifying a strong ability to repay debts.

“It’s a positive signal. Our public finance strategy is clear. It’s ambitious. And it’s credible,” reacted to the Sunday newspaper the Minister of Economy and Finance, Bruno Le Maire. “Our ambition, set by the President of the Republic, is more than ever to accelerate France’s debt reduction, to reach a level of 108% of GDP in 2027, and bring the public deficit below 3% in 2027.“he adds.

At the end of April, another rating agency, Fitch, lowered France’s rating by one notch, from “AA” to “AA-“. The agency had justified this decision by the fact of “tax deficit” of France, its expenditure, its debt ratio and the increasing interest rate at which it borrows. She also mentioned theSocial tensions related to the pension reform, and weaker than expected growth prospects. “Political Impasse and Social Movements (sometimes violent) pose a risk to Macron’s reform agenda and could create pressure for a more expansionary fiscal policy, or a reversal of previous reforms.”wrote the rating agency in a press release (in English).