KBRA Affirms AA/K1+ Ratings for the French Republic; Stable Outlook
13 Dec 2024 | 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 is 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 its large, wealthy, and diversified economy, robust institutional framework, global geostrategic importance, and euro area membership. KBRA highlights the status of French sovereign issuance, which ensures very strong liquidity access, despite mounting fiscal challenges and political pressures. The primary constraints are elevated government debt and persistent budget deficits. The Stable Outlook balances deteriorating public finances and weak primary balances, which complicate fiscal consolidation, against the sovereign’s strong liquidity access. Political disruption amplifies uncertainty regarding policy direction, and if prolonged adverse financial market conditions were to hinder the sovereign’s access to liquidity, KBRA’s assessment of France’s creditworthiness could be affected.
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