France Gets Budget Warning as DBRS Turns Negative on Rating
The city skyline, viewed from the Arc de Triomph in central Paris.
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Morningstar DBRS put a negative outlook on its assessment of France’s creditworthiness, adding to warnings over the country’s debt burden amid growing demands for defense spending and persistent risks of political instability.
The change in outlook reflects “higher execution risks regarding France’s capacity to reduce its large fiscal deficit and high public debt ratio in the coming years, not least related to rising debt interest costs,” the ratings firm said in a statement late Friday.