(MENAFN) Standard & Poor’s (S&P) has reduced France’s credit standing to “A+/A-1” while assigning a “stable” outlook, according to an announcement made on Friday.

The global credit assessment institution stressed that although the 2026 budget proposal has recently been introduced to the national legislature, there remains significant doubt regarding the stability of France’s public finances.

The agency observed that the public budget shortfall for 2025 is forecasted to hit 5.4% of the nation's gross domestic product (GDP).

However, it also remarked that efforts to streamline and improve the fiscal balance are likely to proceed more slowly than originally expected.

S&P reported that the total debt of the public sector is predicted to climb to 121% of GDP by the year 2028.

This figure is a notable increase from the 112% debt-to-GDP ratio registered at the close of the previous year.

The agency confirmed that France’s long- and short-term credit assessments have been downgraded from “AA-/A-1+” to “A+/A-1.”

This decision reflects growing concerns over the country's budgetary trajectory and debt levels.

Additionally, S&P was anticipated to update Türkiye’s rating but did not issue a new evaluation.

However, it was noted that on November 1, 2024, the agency had previously upgraded Türkiye’s long-term sovereign credit status to BB- from B+, while maintaining a stable outlook.

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