The rating agency Fitch lowered France’s credit rating by one notch to “AA-“. There is a possible political standstill in the country and also social movements that could pose risks to President Emmanuel Macron’s reform agenda, Fitch said last night to justify the move. “The social and political pressures evident in the protests against pension reform will make fiscal consolidation more difficult,” it said.
Fitch is now predicting growth of 0.8 percent for the French economy for the current year, after forecasting 1.1 percent in November.
Fitch raised the outlook for the rating from “negative” to “stable”. This signals that no further downgrade is likely in the near term.
