Despite the Brussels Region's ballooning stock of debt, credit rating agency S&P has maintained its A/A-1 rating, though with a negative outlook for the region's debt, according to Finance Minister Dirk De Smedt (Anders).
An A/A-1 rating keeps the region's debt at investment grade, supporting future borrowing needs.
"This rating confirms that the work we are doing is being seen. We took important steps in 2025 and are on the right track in 2026," De Smedt said of the news.
"The deficit is falling, our measures are being implemented, and our liquidity position has improved," he said.
A rating of A/A-1 sits 4 levels above a 'junk' rating and means the credit agency sees Brussels' debt as stable and financially secure.
However, according to S&P, the region would struggle during an economic downturn or during periods of financial instability.
S&P's detailed assessment of Brussels, published in March 2026, said it expected the new regional government's consolidation plan to "help improve the Region of Brussels-Capital's budgetary position over 2026-2028," but that there was still a risk of deviation from deficit-reduction forecasts.
The agency noted that a narrowing budget deficit would improve its rating for the region's debt.
In its next review, S&P will consider whether the region's budget objectives are being translated into reality, and whether the region can still cover short-term finance requirements through tax receipts without relying on new debt.
"S&P’s message is clear: we have made progress, but we are not there yet. Our debt remains far too high. Now it is up to the actual achievement of the agreed budgetary targets. We must consistently maintain this course," argued De Smedt.
The Brussels Government is aiming to balance the budget by 2029, covering its expenditure with revenues without needing new debt.
Last year, the region's budget deficit was 11.3%, a stronger performance than the 19.2% expected by ratings agencies like S&P.
However, even with this, debt continued to climb and could reach an unsustainable level of being three times as large as revenue by 2031, according to Belgium's Federal Planning Bureau.
