Belgium’s credit rating gets a boost from Moody’s

As a sign that the country’s economy continues to stabilise, the American credit agency Moody’s has changed its outlook to stable from its previous negative rating. The agency says that Belgium’s stabilising banking sector has been able to reduce its risks, which led to the decision to lift the rating to AA3.

Falling risk is a strong sign for Moody’s as it is an indication that the government’s financial problems will improve, including its debt. Moody’s believes that improved position in Belgium will begin to reverse the debt, and expects that the government debt will move to 100% of GDP in 2014-2015. However, it is precisely the large debt carried by Belgium that is keeping the rating at AA3, despite decreasing economic risk.