Fitch cuts France's credit outlook to negative amid worsening debt and economic contraction

Fitch Ratings has downgraded France's sovereign credit outlook from stable to negative while affirming its credit rating at A+. The agency highlighted deteriorating debt dynamics, severe political fragmentation, and rising borrowing costs that complicate fiscal consolidation. The decision followed data showing France's economy unexpectedly contracted by 0.1% in the third quarter. Public debt is nearing 120% of GDP and projected by Fitch to reach about 124% by 2028 from 115.7% in 2025. Market pressures have driven French 10-year sovereign bond yields past 5.14%, reaching their highest levels since 2002.