France retains AA debt rating: Fitch
France retained its "AA" credit rating despite its high and rising debt level, Fitch ratings agency said Friday.
Fitch noted that persistent budget deficits mean the debt-to-GDP ratio "will continue to increase in the coming years and peak at 97 percent in 2019," compared to the median level of 42 percent for AA-rated economies.
"The high debt burden limits France's ability to respond to future shocks," the agency cautioned in a statement.
However, "France's prudent debt management strategy helps mitigate the risks from its high public debt."
In addition, Fitch said French President Emmanuel Macron's ambitious structural reform program has coincided with solid growth.
The outlook for France's debt rating is stable, which means Fitch does not see any developments on the horizon that are likely to lead to a change.
READ ALSO: Fitch downgrades France from top rating
Comments
See Also
Fitch noted that persistent budget deficits mean the debt-to-GDP ratio "will continue to increase in the coming years and peak at 97 percent in 2019," compared to the median level of 42 percent for AA-rated economies.
"The high debt burden limits France's ability to respond to future shocks," the agency cautioned in a statement.
However, "France's prudent debt management strategy helps mitigate the risks from its high public debt."
In addition, Fitch said French President Emmanuel Macron's ambitious structural reform program has coincided with solid growth.
The outlook for France's debt rating is stable, which means Fitch does not see any developments on the horizon that are likely to lead to a change.
READ ALSO: Fitch downgrades France from top rating
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.