PARIS, Sept. 13 (Xinhua) — Rating agency Fitch on Friday evening downgraded France’s long-term sovereign credit rating from AA- to A+, with a stable outlook.

Fitch cited a high and rising government debt ratio, political fragmentation hindering consolidation, a weak fiscal record, and high deficits in 2025 as key reasons for the downgrade.

The government’s recent failure in a confidence vote underscored growing fragmentation and polarization in domestic politics, weakening the system’s capacity to deliver substantial fiscal consolidation, it said

The outgoing government’s target of reducing the headline deficit to 3 percent of GDP by 2029 was unlikely to be achieved, it added.

Fitch projected France’s debt would rise to 121 percent of GDP in 2027, up from 113.2 percent in 2024, with no clear path to debt stabilization in the following years.

The agency also maintained its forecast for real GDP growth at 0.6 percent in 2025.

In a press release, the French Ministry of Economy, Finance and Industrial and Digital Sovereignty said Minister Eric Lombard had “taken note” of the downgrade while stressing the underlying strength of the French economy.

New Prime Minister Sebastien Lecornu has begun consultations with the political forces in Parliament with a view to adopting a budget for the country to continue efforts to restore public finances, the ministry said.