France's credit rating has been downgraded following the close of Wall
Street trading by Fitch Ratings, one of the premier international
bodies which determines the financial solidity of sovereign borrowing
". . .The major credit assessment agency has downgraded the nation's credit
standing from a AA- rating, which suggested France was in a "very
strong capacity for payment of financial commitments".
- The decision arrives mere days after Prime Minister François Bayrou's Government collapsed through a parliamentary confidence vote.
- His failed attempt to pass an austerity budget aimed at reducing France's fiscal imbalances has spooked confidence in the global superpower in being able to manage its finances.
On its website, Fitch defines an A rating as being "low risk and the "capacity for payment of financial commitments is considered strong".
It added: "This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings."
Political instability compounds these fiscal challenges, with Mr Macron's parliamentary allies lacking an overall majority.
Fitch downgrades crisis-strained France
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