Fitch leaves Belgium's credit rating unchanged

Rating agency Fitch has kept Belgium's credit rating stable at AA-. However, the outlook remains negative, meaning that a downgrade is possible.

According to the rating agency, Belgium has a diverse and prosperous economy with high value-added. On the negative side are the high level of debt and the political and institutional context. Fitch is looking ahead to the elections on 9 June, after which there is a risk of a "prolonged political stalemate" and a postponement of budgetary efforts.

Belgian budget deficit to grow next year with major savings required

Belgium’s substantial budget deficit is set to continue widening and will likely exceed 5 per cent of GDP by 2026, the National Bank of Belgium...

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The rating agency expects Belgium to be placed under the European Excessive Deficit Procedure this year. A credit rating downgrade is possible if Belgium fails to tackle the deficits. The country's creditworthiness could also be affected if its competitiveness vis-à-vis its neighbours deteriorates due to rising labour costs.

^{© Lev Radin/ZUMA Press Wire}

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