Fitch maintains the sovereign rating of France – Le Figaro

The US rating agency Fitch Ratings Friday maintained the AA sovereign rating of France, without changing either its perspective of evolution, which remains stable.

The agency says in a statement that France has “a diversified economy and healthy”, with a “relative macro-financial stability” but a “budget deficit and high debt ratio on GDP.”

“Although less important” than the past, “persistent budget deficits, fueled by heavy government spending, have led public debt to reach 96% of GDP at end 2015,” said the US rating agency. “This high level of indebtedness reduces the ability of France to face tax shock is the main weakness of sovereign debt” in the country, she said.

Fitch had downgraded France in December 2014 AA + to AA with a stable outlook, saying the weak economy put at risk the deficit reduction targets.