Institutions: Despite facing fiscal challenges, there is still ample demand for French government bonds

Gold Ten Data News on November 14th, European credit rating agency Scope Ratings said that despite the challenges in France’s fiscal and political prospects, the country’s potential credit advantages include the favorable situation of government debt. Analysts Thomas Gillet and Brian Marly said in a report that French government bonds benefit from strong investor demand, which is expected to continue until 2025. The analysts said that France’s funding situation may still be affected by recent fiscal and political conditions. “But our basic assumption is that France’s core credit advantages will offset the challenging fiscal and political prospects before the next presidential election in 2027, with a rating of AA-/stable.” On October 18th, due to deteriorating fiscal prospects and a divided political environment, Scope Ratings downgraded France’s rating to AA-.