DBRS Commentary: Positive Impact of Macron Win on France’s Sovereign Rating

DBRS, Inc. has today released a commentary entitled “Positive Impact of Macron Win on France’s Sovereign Rating.” The main points in the commentary are:

• The election of centrist Emmanuel Macron in the presidential elections is likely to bolster France’s creditworthiness. If Macron can implement his agenda of tight fiscal policy and structural reforms, this would support fiscal and debt sustainability.

• However, to achieve its policy objectives En Marche! will need to build a coalition with sufficient power in the June parliamentary elections. It is likely that Macron will reach a working majority with the Republicans or Socialists. However, there is a chance that a fragmented parliament will impede his policy agenda.

• Fostering social cohesion and addressing the concerns of those who struggle with low skills and education, face limited job opportunities, or who fear terrorism and immigration will be important to successful implementation of structural reforms and deeper European integration.

Notes:
The applicable methodology is Rating Sovereign Governments, which can be found on our website under Methodologies.

A copy of this commentary is available by clicking on the link below or by contacting us at info@dbrs.com.