2024-10-16 08:04:00
Rating agency Moody’s lowered its outlook for the Flandersthe Wallonia and the Wallonia-Brussels Federationafter that of Belgium.
The rating agency is concerned about the public finances of Belgium and last week lowered the outlook from “stable” to “negative”. The financial rating of Belgian sovereign debt remains unchanged at “Aa3. “Aa” means that the agency considers the credit risk to be “very low” and “3” means that Belgium is at the bottom of the scale of this category.
Moody’s now lowers the outlook for Flanders, Wallonia and the Wallonia-Brussels Federation, also from “stable” to “negative”. The agency highlights the extent to which regions and communities are closely linked to the Belgian state on institutional, operational and financial levels. Concerns about Belgian public finances therefore also involve concerns for the accounts of regions and communities.
The financial grades nevertheless remain unchanged: “Aa3” for Flanders, “A3” for Wallonia and “A2” for the Wallonia-Brussels Federation.
A downgrade increases the cost of borrowing on international markets.
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