Xinhua Agency, Paris, October 18 (Reporter Cui Kexin) International credit rating agency Standard & Poor's released a report on the evening of the 17th, downgrading France's long-term foreign currency issuer default rating from "AA-" to "A+", and adjusting its rating outlook from "negative" to "stable." This is the second time in nearly a year and a half that S & P has downgraded France's sovereign credit rating.

Standard & Poor's was originally scheduled to release France's sovereign credit rating report at the end of November, but due to recent changes in France's political situation, the agency decided to release the report in advance. The report pointed out that although the French government has submitted the draft budget for 2026 to Parliament this week, France's "uncertainty in public finances is still high", which may inhibit investment and private consumption, affect economic growth, and thus drag down the overall economic performance.

The report believes that the proportion of France¡¯s public budget deficit to GDP in 2025 is expected to reach the government¡¯s 5.4% target, but that progress in French fiscal rectification will be slower than expected if no additional strong measures are taken to cut the deficit.

French Economy and Finance Minister Roland Leicester said in an interview with France¡¯s News Radio on Tuesday that the S&P reduction of France¡¯s sovereign credit rating was a ¡°call for awareness and responsibility¡± and stressed that the government and parliament must work together to pass the budget and maintain fiscal stability in order to strengthen market and rating agency confidence.

In September, another international rating agency, Moody's, lowered the rating of French long-term foreign currency issuers from "AA-" to "A+" due to continued political unrest, long-term budget delays and continued debt levels.