Belgium Has Outlook on Debt Cut to ‘Negative’ at S&P
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Belgium had the outlook on its debt rating lowered to “negative” from “stable” at Standard & Poor’s Ratings Services because the country’s political stalemate makes it vulnerable to rising borrowing costs.
S&P may cut Belgium’s AA+ sovereign credit rating by one step within the next six months should the seven parties involved in coalition talks fail to form a government “soon,” the credit agency said today in a statement. It may also cut the rating within two years should the next government fail to stabilize public debt and improve political cohesion.