KBRA Affirms AA/K1+ Ratings for the French Republic; Outlook Revised to Negative
13 Jun 2025 | Dublin
KBRA Europe (KBRA) affirms long-term issuer ratings of AA for the French Republic. KBRA also affirms the short-term ratings of K1+ of the sovereign. The Outlook on the long-term ratings has been been revised to Negative from Stable.
| This credit rating is an unsolicited credit rating. | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
KBRA’s affirmation of France’s ratings reflects the country’s large, wealthy, and diversified economy, its long-standing macroeconomic stability, and the strength of its institutional framework, all of which continue to support its macro-fiscal resilience. France’s central role in the European Union and the euro area, along with its permanent membership on the UN Security Council and its position within NATO, reinforce its global geopolitical influence. The Negative Outlook, however, highlights France’s structurally weak public finances, characterised by consistently high budget deficits and a rising debt burden that has proven difficult to reverse. These fiscal vulnerabilities are exacerbated by an increasingly fragmented political environment, which KBRA believes constrains the government’s capacity to implement effective fiscal consolidation and broader structural reforms. This political uncertainty also poses risks to the sustainability of reforms already enacted. Additionally, France remains exposed to external risks such as global trade disruptions, escalating geopolitical tensions, and protectionist policies.
To access ratings and relevant documents, click here.
Click here to view the report.