S&P Downgrades Belgium's Credit Rating to AA-

On April 25, Jin10 reported that international credit rating agency Standard & Poor's (S&P) announced on April 24 the downgrade of Belgium's credit rating from 'AA' to 'AA-', with a stable outlook. According to Jin10, S&P cited Belgium's long-term public finance imbalance as the primary reason for the downgrade. In a statement, S&P noted that Belgium's budget deficit is expected to significantly widen in 2025, and the fiscal consolidation plan from 2026 to 2029 is progressing slowly, posing serious fiscal challenges. S&P forecasts that Belgium's government net debt as a percentage of GDP will rise from 103% in 2025 to 109% in 2029, with interest expenses also expected to increase substantially. Additionally, S&P highlighted Belgium's reliance on fossil fuels and its already tight energy supply, making it vulnerable to the impact of soaring international oil prices due to ongoing Middle East conflicts, which introduces new uncertainties to its public finances.