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2025-09-15 15:53:31
[Jefferies is bearish on French bonds, and Fitch's downgrade raises concerns] Jefferies maintained its bearish view on French bonds after Fitch Ratings downgraded France's credit rating. Jefferies is worried that the new government will not be able to implement sufficient fiscal consolidation, which may lead to downgrades by other rating agencies. "We don't see how the new Lecornu government will be able to convincingly implement fiscal reforms," said Mohit Kumar, a global economist. Moody's Ratings/S&P Global Ratings may follow Fitch in downgrading; the two agencies currently give France a rating of Aa3 and AA- respectively. Mohit Kumar said that if France is downgraded to below AA- by two or more rating agencies, we may see some institutional accounts engage in forced selling."
