The rating agency Moody’s has maintained its “A2 with stable outlook” rating for the Wallonia-Brussels Federation.
This analysis of the financial situation allows market participants to evaluate the Federation’s borrowing quality.
Unchanged since the end of 2021, this rating holds the Federation “at an upper medium quality level (level six on a scale of 21 rating levels)”.
“Moody’s again confirmed the prudent and sophisticated management of the debt and unequivocal access to financial markets,” Belgium’s Budget Minister, Frédéric Daerden, said. “Maintaining this rating reflects careful debt management, which has particularly helped to limit the increase in interest expenses under the present legislature, always less than 2% of income, and diversify the Federation’s accessible funding sources.”
The average debt maturity of around 15 years and over 93% fixed rate securities also offers financial assurance against potential interest rate fluctuations, Daerden added.
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According to the Budget Minister 70% of financing needs for the year 2024 have already been met, and investor interest remains unwavering.
The unchanged rating level is a “vote of confidence” for the Federation, allowing it to maintain moderate financing costs for its future borrowings, especially for the exceptional investment plan in school buildings, Frédéric Daerden stated.
