The reason for the increase in military spending, in which it sees a risk of rising deficit and state debt “in the medium term”
The Morningstar DBRS credit rating house downgraded late last night Friday the prospects of France’s debtor from “constants” to “negative”, however, keeping the “AA” rating unchanged, citing the increase in military spending, in which he seeing the military spending.
The change in perspective, which means that the firm could downgrade France’s evaluation in the near future, reflects “the highest risks to France’s ability to cope with its large fiscal deficit and the speech of its public debt” to GDP “in the coming years”.
The house is particularly mentioned in increasing interest rates of public debt, which according to some economists can overcome education as the main exit of the French state.
Of the three “big” evaluation agencies – S & P, Fitch, Moody’s – who classify France in the “AA” or corresponding (AA3 Moody’s) the first two attribute the third stable perspective to its debt. They have also accused the government of President Emmanuel Macron delay in reducing the public deficit (which is expected to reach 5.4% of GDP in 2025) and are referring to political instability, especially referring to last year’s developments.
Source: Skai
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