Scope Ratings has downgraded France's sovereign credit rating from AA- to A+, according to Ouest-France. The agency pointed to lasting high budget deficits and a political crisis as reasons for the move, Le Parisien reports. The downgrade was announced on Friday.
The rating agency also revised France's outlook to stable, Le Figaro reports. That means Scope does not currently expect further changes to the grade in the near term.
Several French outlets framed the decision around the country's public finances. TF1 Info described it as a "persistent deterioration of budget prospects," while Le Parisien tied it to both the deficit trajectory and the political situation in France.
The downgrade places France one notch lower in Scope's assessment of its ability to meet debt obligations. A lower rating can affect the cost at which a government borrows money, though the reports did not give specific figures on that impact.
The coverage did not include a response from the French government or details on what specific budget measures prompted the agency's decision. No further information on the timing of any future reviews was provided in the reports.
What to watch next: whether other major ratings agencies follow Scope's move, and how French officials respond to the downgrade.