KBRA Affirms AA/K1+ Ratings for the French Republic; Stable Outlook
15 Dec 2023 | 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 the ratings reflects France’s large, wealthy, diversified, and resilient economy, robust institutional framework, global geostrategic importance, strong access to liquidity, and euro area membership. The primary rating constraints are France’s elevated general government debt burden and persistent budget deficits. The Outlook considers the resilience of the French economy, coupled with ongoing reforms aimed at improving efficiency and productivity, but also worsening public financial health and mounting fiscal pressures. Inflation and tighter monetary policy weighs on near-term economic growth and public finances. KBRA expects that structural reforms will continue to take place in France, while public investment, both domestic and at a European Union level, seeks to add to growth and make the economy more sustainable.
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