The New York rating agency has retained the “AA-/A-1+” ratings for the Hauts-de-Seine department.
Often considered to be the richest department in France, Hauts-de-Seine can be pleased to maintain a good rating. At the end of July, S&P Global Ratings maintained “AA-/A-1+” ratings for the Hauts-de-Seine department.
The New York rating agency estimates in its latest report that the department's operating revenues should decrease this year, due to the decline in the real estate market, before gradually recovering in 2025-2026.
S&P Global Ratings estimates that, for the period 2024-2026, operating surpluses will be “well below the levels reached in 2017-2022 despite efforts made to implement budgetary savings measures”.
“In the absence of additional fiscal measures during the 2024-2025 period, we anticipate that high capital expenditure will contribute to increased borrowing requirements, also necessary to replenish the department's working capital. This should lead to a significant increase in the debt of Hauts-de-Seine, although from very low levels, by 2026,” writes the agency.
The agency anticipates a recovery in the real estate market and transfer tax revenues (DMTO), which, combined with measures to control operating expenses after 2025, will allow 92 to improve its budgetary performance as well as its liquidity position. .
S&P Global Ratings considers that with La Défense, the department also benefits from “leading infrastructure” and “complete integration into the Ile-de-France economic fabric”.
S&P Global Ratings has thus confirmed the long-term 'AA-' and short-term 'A-1+' rating for the Hauts-de-Seine department. The outlook remains stable. However, if France were to see its ratings downgraded, similar action would be taken on the ratings of Hauts-de-Seine. “We could also consider a rating downgrade if insufficient policy efforts and/or prolonged deterioration in the real estate market undermine the department's fiscal consolidation plan, leading to a further increase in debt and a permanent weakening of the liquidity position,” warns S&P Global Ratings.
Department of Hauts-de-Seine_Press release_26072024
France
