Fitch Downgrades France’s Credit Rating | Farsnews Agency

Rating agency Fitch downgraded France’s sovereign credit rating, warning that public resistance to a recent pension reform could take a toll on the economy.

The agency lowered the rating from “AA” to “AA-”, with a stable outlook. The downgrade means France is considered a more risky venture for investors, which could lead to higher borrowing costs, RT reported.

“Fitch believes that social and political pressures illustrated by the protests against the pension reform will complicate fiscal consolidation,” the agency wrote.

It added that the government’s decision to bypass a parliamentary vote to push through the pension reform will “likely further strengthen radical and anti-establishment forces”.

“Political deadlock and (sometimes violent) social movements pose a risk to Macron's reform agenda and could create pressures for a more expansionary fiscal policy or a reversal of previous reforms,” Fitch warned.