Standard and Poor's on Friday maintained France's long-term debt rating at "AA" as well as the
"stable"
outlook
attached to it, confident in its ability to resume growth and restore balance to its finances public.
Read also: Why the rating agencies have lost so much of their influence
The rating agency had kept the country's sovereign rating unchanged during its previous review in October.
S&P, which forecasts a rebound of 5.6% of GDP, admits that
"the broad measures to support the economy have resulted in a large budget deficit and a sharp increase in public debt
.
"
The crisis caused the debt to soar to 115.7% of GDP in 2020, while the public deficit reached 9.2% of GDP, the state having spent lavishly to support the economy in the face of health restrictions.
But
"we believe that the diversified economy of France, its solid institutions and the counter-cyclical economic policy opportunely followed, associated with the monetary support of the European Central Bank (ECB), reinforce the prospects for recovery and a gradual return to the economy. 'balance of public finances'
.
The stable outlook
“reflects our opinion that France will contain the negative effects of the pandemic on its economy and its budgetary situation
,
”
adds the agency.
Risk of downgrading the rating
S&P warns, however, that the rating could be revised down
"if the budget deficit does not reduce as we expect"
, or because of
"insufficient effort to restore the fiscal path once the effect of the pandemic will have abated ”
, ie if the economic recovery was slow to materialize.
In May 2020, the competing agency Fitch had lowered the prospect of France, while keeping its AA rating.