« Reduced prospect of rating agency S&P is a warning for federal government »
Jean Deboute, director at the agency of the debt. – © Belga
The negatively adjusted prospect for Belgian public finances by Ratingbureau Standard & Poor’s (S&P) warns the federal government that the plans must also be implemented effectively. That is what Jean Deboute, director at the Debt Agency, says on Saturday in a response to the most recent S&P report.
In the new S&P report, Belgium retains its credit score, but the outlooks are reduced from stable to negative.
The budget plans of the Arizona government for 2025 « bring clarity to the policy and indicate a shift in the direction of budgetary caution, » said the credit rating agent. S&P does warn against obstacles in the implementation of the plans, including « possible social resistance to cuts ».
In the adjusted prospects, Deboutte therefore mainly sees a warning for the policy makers to continue with the planned investments and savings. « The comments from the rating agency are based on doubt that the government plans will succeed, » says Deboutte. « But if the plans are implemented, this should not lead to a reduction in the rating. »
« If there is already a reaction from the markets to this last report, it will be limited, » says Deboutte. In any case, the government now has more than a month and a half to continue working on the planned reforms. Rating agency Fitch will be released in mid -June with a new review. The next review of S&P is planned for October, and around the same time also publishes Moody’s.
The ratings that give international credit rating agencies to what extent a country can borrow money smoothly on the international markets.
