**France faces sustained fiscal pressures from elevated deficits above 5% of GDP, public debt exceeding 115-119% of GDP, and rising borrowing costs, compounded by political fragmentation that complicates budget passage and structural reforms.** S&P downgraded the sovereign rating to A+ with a stable outlook in October 2025 and has since affirmed it, with the next scheduled review on November 27, 2026. Moody’s lowered its rating to Aa3 (with a negative outlook at points) amid concerns over legislative gridlock and slower consolidation; its next review is set for late October 2026. Agencies have cited risks from delayed fiscal targets, pension reform pauses, and uncertainty ahead of the 2027 presidential and legislative elections. These factors shape trader views on further notches from either agency, with scheduled reviews and budget negotiations as key near-term catalysts.