Morgan Stanley believes that the French government intends to reduce the deficit rate from 5.5% to 5.1% in 2024, which seems attainable. The main impetus came from ending most energy-related measures. These measures alone would reduce the deficit as a share of GDP by 0.7%. The 2025 deficit is likely to be higher than the target. Economic growth in 2026-27 may not be as strong as expected, putting at risk the goal of reducing the deficit below 3% in 2027. Fitch and Moody's will evaluate France's sovereign rating on April 26, and S&P will evaluate it on May 31. Judging from the current situation, there is a greater risk that S&P will downgrade France's rating. We believe that in the case of a downgrade, French treasury bonds are unlikely to depreciate further, but if S&P keeps their ratings unchanged, French treasury bonds may appreciate compared to other bonds during the same period.