Brussels and Belgium see credit ratings lowered
Two times bad news for the indebted Belgian authorities. The American rating agency S&P has lowered its assessment of the creditworthiness of the Brussels Capital Region. Fitch downgraded Belgium's credit rating one step, from AA- to A+.
The lack of a new government is a cause for concern for the credit rating agency. The intervention may result in Brussels becoming more expensive to borrow money. S&P lowers the Brussels rating from A+ to A, on a scale ranging from AAA to D.
A rating of A+ for Belgium means that Fitch still assumes a 'low default risk' and a 'strong capacity to meet financial obligations'.
Meanwhile, there is a little progress in the formation of a Brussels government, where two separate initiatives were taken, one on the left wing side and one on the right wing side. Vooruit, the Flemish socialists, doesn’t want to continue with the initiative of PS, the francophone socialists. Vooruit wants PS to collaborate with MR, the francophone liberals.
© BELGA PHOTO JONAS ROOSENS
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