Due to the corona pandemic and the economic impact of the crisis, the rating agency Moody has less confidence in some Belgian municipalities and regions. Therefore, some changes were announced on Friday evening.
The rating agency downgrades the French community’s long-term rating from Aa3 to A1, including a negative outlook. This means that the rating can be lowered in the future. The Aa2 rating for the Flemish community will be maintained but the financial outlook will change from stable to negative. In addition, the Walloon region will also have a negative outlook from Moody’s, but will retain its A2 rating.
With regard to the changes to the ratings and the outlook, the rating agency refers to the considerable negative pressure of the corona pandemic and the likely lasting effects of the crisis on the deficits and indebtedness of the regions affected.