Illustrative photo of euro banknotes. – GILE MICHEL / SIPA
The rating agency Fitch lowered the outlook for France from stable to negative on Friday, fearing a deterioration in public finances and the economy this year, but without touching for the moment its “AA” rating.
“The lowering of the outlook reflects the substantial deterioration expected this year in public finances and economic activity due to the Covid-19 epidemic,” the agency said in a statement.
Not yet down grade
“The deterioration in the parameters of public finances will occur in a context of an already high level of debt (…), limited progress in budgetary consolidation since the financial crisis (of 2008) and moderate economic growth”, a- she added.
After this decision, Fitch has two years to possibly lower the rating of France. At the start of April, another rating agency, S & P, had maintained France’s AA rating, without touching the prospect that it had kept it stable.
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