S&P cuts France’s outlook to ‘negative’ on rising budgetary risks

(Reuters) – Ratings agency S&P Global (NYSE:) cut France’s outlook to “negative” from “stable”, reflecting its view of rising risks to the country’s public finances and the resulting fiscal space reduction.

The ratings downgrade comes amid France’s already large general government debt, an implementation risk associated with its structural reform agenda, a wider economic slowdown and the European Central Bank’s monetary tightening, S&P said in its report.

The agency affirmed France’s sovereign credit rating at “AA/A-1+”.

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