S&P justified its decision by the increased level of budget uncertainty, despite the submission of the draft budget for 2025. As a result of this move, France lost its double AA rating with two of the three largest rating agencies in just a few weeks. This may force some investment funds that adhere to strict investment criteria, to sell French bonds.
Currently, France is at A+ with a stable outlook, according to S&P, which puts it on par with Spain and Portugal, six notches above junk status. France's next rating assessment, this time by Moody's, is scheduled for October 24.
