Scope Ratings downgraded France's credit rating to A+ from AA- on Sept. 18, citing budgetary pressures and political instability. The agency's decision coincided with a market selloff that pushed the 10 year bond yield to 4.57% on Sept. 20, marking the highest level for French sovereign debt since the 2008 financial crisis.

The French finance ministry targets a budget deficit of 5.0% of GDP in 2027, though Prime Minister Lecornu warned that the deficit would exceed 6.5% without corrective measures. Public debt is projected to hit 121.7% of GDP by 2027, while the 10 year yield spread between France and Germany widened to 100 basis points for the first time since 2012.