Financial rating
Following the example of the other federated entities in Belgium, on 8th November 2024 Moody's assigned a negative outlook to the Walloon Region while maintaining its long-term A3 rating.
The institutional, operational and financial links with the Federal Government would justify aligning the outlooks of the Regions and Communities with the Sovereign. This is therefore a mechanical change of perspective.
The basis for assigning the A3 rating remains unchanged, namely a recurring financial deficit and a level of debt that will remain very high.
Moody's notes, however, that the Region benefits from unconditional access to financing on the markets, a mature and solid legislative context, prudent and sophisticated management of its debt, and flexible revenues thanks to its fiscal power.
Finally, support from the Federal Government in the event of a liquidity crisis is highly likely.