Scope Ratings Warns French Government Collapse Risks Credit Downgrade

Scope Ratings warned that a collapse of the French government is now the most likely scenario and would be regarded as credit negative for the sovereign. The agency said such an outcome could trigger a downgrade of France’s rating, reflecting heightened political uncertainty and the impact on fiscal management. The ratings firm added that the current parliamentary deadlock is already undermining the government’s plan to cut the budget deficit, further weighing on the country’s credit profile.