Is France’s Sovereign Debt Heading Towards ’Junk’ Territory? - Investing.com Canada
Is France’s Sovereign Debt Heading Towards ’Junk’ Territory? - Investing.com Canada
Source: Investing.com Canada
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DW NOTE
France's sovereign debt is already one downgrade from junk at Moody's. The question isn't whether the rating agencies will act — it's what deficit level finally forces their hand. French 10-year yields are trading 77 basis points above German bunds with the fiscal gap widening, not closing. The ECB bought €1.7 trillion of eurozone debt during the pandemic. That cushion is gone, and France is running a 5.5% deficit with no credible consolidation plan. Junk isn't a destination — it's arithmetic.