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.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.
About KBRA Europe
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
Doc ID: 1002836