Fitch affirms Belgium's rating
International credit rating agency Fitch confirmed Belgium`s credit rating and revised its outlook downwards.
According to the statement made by Fitch, the country's long-term foreign currency credit rating was affirmed as "AA-".
Fitch downgraded the outlook from "stable" to "negative", citing ever-widening fiscal deficits, debt growth and limited capacity to manage pressures.
Fitch expects Belgium's fiscal balance to rise from 4 percent in 2022 to 5.2 percent in 2023, despite the gradual lifting of temporary measures.
According to the basic scenario of the institution, the general government debt/GDP ratio will continue to increase gradually in the medium and long term.
"In our view, given the upcoming federal parliamentary elections in 2024, it is unlikely that the government will take fiscal consolidation measures to narrow the fiscal deficit. We see a significant risk of delay in the consolidation of public finances," the statement said.
