Moody’s has confirmed the credit rating of Flanders at Aa3, with negative outlooks retained for Flanders, Wallonia, and the French-speaking Community.
The credit ratings for Flanders, Wallonia, and the French-speaking Community remain unchanged due to strong governance, prudent debt management, and solid market access, according to Moody’s.
These factors continue to support their credit quality despite rising debt and interest costs.
Moody’s uses Aaa as its top rating, followed by the Aa category, which is subdivided into three levels. The Aa3 rating signifies high quality and very low credit risk.
Flanders is noted for its ability to manage debt effectively and its capacity to implement cost-reduction measures, which contributed to the retention of its rating.
Moody’s expects Flanders to significantly reduce its financing deficit over the next three years through disciplined budget management and phasing out extensive spending programmes. However, financial deficits and mounting debt are cited as challenges affecting Flanders’ ratings.
Wallonia’s credit rating remains at A3 with negative outlooks, Moody’s confirmed earlier through the office of Wallonian Minister-President Adrien Dolimont.
The French-speaking Community has retained a higher rating of A2, though it too carries a negative outlook. Both ratings are lower than Flanders’.
Earlier this month, Moody’s also maintained Belgium’s national credit rating at Aa3 with a negative outlook. On Friday, S&P affirmed Belgium’s credit score at AA/A-1+.
